Question
The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States
The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. If the United States and France engage in free trade with each other, the international price of cheese will lie between _____ and _____.
| Labor hours to make: | In the United States | In France |
| 1 gallon of wine | 4.00 | 1.00 |
| 1 pound of cheese | 1.00 | 2.00 |
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Microeconomics
Authors: Jeffrey M. Perloff
8th edition
134519531, 978-0134519531
