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The table below presents the production possibilities schedules for the cities of Venice and Florence, each of which produces pasta and wine. Production Possibilities
The table below presents the production possibilities schedules for the cities of Venice and Florence, each of which produces pasta and wine. Production Possibilities Schedules for Venice and Florence Florence Venice Wine (bottles) 0 Pasta Pasta (pounds) 50 Wine (bottles) (pounds) 200 0 100 25 25 50 0 50 0 100 Instructions: In parts b and d, round your answers to two decimal places. a. What is Venice's opportunity cost of producing one pound of pasta? b. What is Venice's opportunity cost of producing one bottle of wine? pound(s) of pasta c. What is Florence's opportunity cost of producing one pound of pasta? d. What is Florence's opportunity cost of producing one bottle of wine? pound(s) of pasta e. (Click to select) has the comparative advantage in producing pasta and (Click to select) has the comparative advantage in producing wine.
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