Comparative advantage in producing cheese

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Assume that France can produce wine at 25 bottles per worker and cheese at 5 pounds per worker. Assume that Italy can produce 10 bottles of wine per worker and 20 pounds of cheese per worker. Build a Production Possibility Curves for these countries.

a. In terms of cheese, what is the opportunity cost of producing wine in each country?

b. Who has the comparative advantage in producing cheese? Why?

c. Which country should most likely specialize in cheese? In wine? Why?

Reference no: EM133078900

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