If France Is Capable of Producing Either Cheese or Wine

question 39

Multiple Choice

If France is capable of producing either cheese or wine or some combination of those two products,then France should:

• A) produce the one it is more efficient at producing.
• B) produce the one for which it has a comparative advantage.
• C) produce the one for which it has a higher opportunity cost.
• D) remain self-sufficient if it has the absolute advantage in the production of both.

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Definitions:

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