Italy has the comparative advantage in wine

Question-

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 subsequent is true about the comparative advantage between the two countries?

a) France has the comparative advantage in wine.

b) Italy has the comparative advantage in wine.

c) Italy has the comparative advantage in cheese.

d) France has the comparative advantage in wine and cheese.

Posted Date: 2/6/2014 8:15:41 PM | Location : United Kingdom(UK)

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