France and England Both Produce Wine and Clothing with Constant

question 225

Multiple Choice

France and England both produce wine and clothing with constant opportunity costs.France will have a comparative advantage in wine production if:

• A)it can produce more wine than England.
• B)its labor productivity in wine production is greater than England's.
• C)the absolute cost of producing wine is lower in France than in England.
• D)the opportunity cost of wine production is lower in France than in England.

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