For Each Bottle of Wine That Italy Produces, It Gives

question 105

Multiple Choice

For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese.France can produce 1 bottle of wine for every 25 pounds of cheese it produces.Which of the following is true about the comparative advantage between the two countries?

• A)Italy has the comparative advantage in cheese.
• B)Italy has the comparative advantage in wine.
• C)France has the comparative advantage in wine and cheese.
• D)France has the comparative advantage in wine.

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