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England has an absolute advantage in the production of cheese and Spain has an absolute advantage in the production of bread. neither good and Spain

England has an absolute advantage in the production of

cheese and Spain has an absolute advantage in the production of bread.

neither good and Spain has an absolute advantage in the production of both goods.

bread and Spain has an absolute advantage in the production of cheese.

both goods and Spain has an absolute advantage in the production of neither good.

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Table 1. Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed Number of Units to Make 1 Unit of Produced in 40 Hours Cheese Bread Cheese Bread England CO 5 5 8 Spain 8 10

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