France and England both produce wine and cloth with constant opportunity costs. France can produce 150...

70.2K

Verified Solution

Question

Economics

France and England both produce wine and cloth with constantopportunity costs. France can produce 150 barrels of wine if itproduces no cloth or 100 bolts of cloth if it produces no wine.England can produce 50 barrels of wine if it produces no cloth or150 bolts of cloth if it produces no wine. When international tradetakes place, each country specializes completely in the productionof the good in which it has a comparative advantage: 1 barrel ofwine exchanges for 1 bolt of cloth and France exports 50 units ofwine. We can conclude that France produces ___ units of wine and_ units of cloth and that France consumes _ units of wineand ___ units of cloth.
150; 0; 100; 50
150; 0; 50; 50
150; 100; 100; 100
0; 100; 50; 50

Answer & Explanation Solved by verified expert

3.9 Ratings (730 Votes)

Frances opportunity cost of producing 1 barrel of wine is 100150 067 bolts of clothes Frances opportunity cost of producing 1 bolt of cloth is 150100 15 barrel of wine Englands opportunity cost of producing 1 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member