COOOSuppose that Canada can make 45 kilograms of cheese or 60 bottles of wine with one year's worth of labour. France can make 30 kilograms ofcheese or 54 bottles of wine with one year's worth of labour. What can we conclude from these numbers?a. Canada has a comparative advantage in the production of wine.b. Canada has an absolute advantage in the production of cheese.c. France has an absolute advantage in the production of wine.d. France has a comparative advantage in the production of cheese.

In order to solve this problem, let us first understand the difference between absolute and…

Answered: C O O O Suppose that Canada can make 45…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 6CQQ

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