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RICARDIAN MODEL (ABSOLUTE AND COMPARATIVE ADVANTAGES) Consider the case described in question (3). The unit-labour requirements to produce cheese and wine in each country are
RICARDIAN MODEL (ABSOLUTE AND COMPARATIVE ADVANTAGES) Consider the case described in question (3). The unit-labour requirements to produce cheese and wine in each country are the following: Labour-hours to produce France Italy Cheese (1 kg) 5 Wine (1 It) 8 What country has the absolute advantage in cheese? What country has the comparative advantage in cheese? If countries are allowed to trade, what country should specialise in producing wine? Select one: O a. Italy, France, France Ob Italy, Italy, Italy Oc Italy, France, Italy Od France, Italy, France Oe France, France, France
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