The following table shows the units of labour necessary to produce one unit of output of each good (F: Food and C: Car) in two countries (France and Germany). Food Car France Germany Assume that there are 24 work hours in a day. Therefore, in a single day of 24 hours, France can produce 24 1 2. 6 3 umits of For 12 units of C. Similarly, Germany can produce 4 units of F or 8 units of c. Labour cost of producing F is lower in France compared to Germany. And, the labour cost of producing C is lower in France compared to Gemany. This implies that And, Producing one more F in France requires less labour than producing one more C. Similarly, producing one more in C in Germany requires less labour than producing one more F. This implies that And, (18) has an absolute advantage in (19) production. (20) has an absolute adantage in _21) production. _(22) has a comparative advantage in (23) production. (24) has a comparative advantage in 25) production. Both countries may gain from trade. Because, trade enables the consumption of bundles outside the (26) of the countries.