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

Venice Florence

Pasta (pounds) Wine (bottles) Pasta (pounds) Wine (bottles)

50 0 40 0

25 20 20 40

0 40 0 80

Instructions:In partsb and d, round your answers to 2 decimal places.

a. What is Venice's opportunity cost of producing one pound of pasta?

• 0.8 bottle(s) of wine
• 2 bottle(s) of wine
• 1.25 bottle(s) of wine
• 0.5 bottle(s) of wine

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?

• 1.25 bottle(s) of wine
• 2 bottle(s) of wine
• 0.5 bottle(s) of wine
• 0.8 bottle(s) of wine

d. What is Florence's opportunity cost of producing one bottle of wine?

( ) pound(s) of pasta

(Venice) has the comparative advantage in producing pasta and (Florence) has the comparative advantage in producing wine.