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Table 3.4 Labor hours to make: In the United States In France I gallon of wine 4.00 1.00 I pound of cheese 1.00 2.00 The
Table 3.4 Labor hours to make: In the United States In France I gallon of wine 4.00 1.00 I pound of cheese 1.00 2.00 The table given above shows the number of labor hours required to produce 1 gallon of wine and 1 pound of cheese in the U.S. and France. 4. Refer to Table 3.4 and answer the following: A. Find out who has the absolute advantage in the producing what? B. What is the relative price of cheese (the price of cheese in terms of wine) in France under no trade situation? C. The opportunity cost of producing cheese in the United States. D. What should be the international price of wine once France and US decided to trade with each other
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