This Table Shows How Much Wine and Cheese Can Be

question 116

Multiple Choice

This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources.Initially there is no trade.Once trade opens up,transportation costs are assumed to be zero.
TABLE 32-5
-Refer to Table 32-5.The comparative advantage in wine is held by

• A)Spain.
• B)Portugal.
• C)both countries.
• D)neither country.
• E)Insufficient information to determine the answer.

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