Question
In France, it takes 4 hours of work to produce a barrel of wine and 4 hours to produce a ton of sausage. In Germany,
In France, it takes 4 hours of work to produce a barrel of wine and 4 hours to produce a ton of sausage. In Germany, it takes 10 hours of work to produce a barrel of wine and 5 hours to produce a ton of sausage. We know that
A) for trade to be beneficial to both countries, France should specialize in wine production.
B) for trade to be beneficial to both countries, France should specialize in both wine and sausage production.
C) for trade to be beneficial to both countries, France should specialize in sausage production. D) these countries cannot benefit from trade.
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