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The table below shows the number of labour hours required to produce one unit of food and one unit of clothes in Italy and France.

The table below shows the number of labour hours required to produce one unit of food and one unit of clothes in Italy and France.

# of labour

hours for 1

unit

(in thousands) Food clothing

Italy 100 125

France 60 90

a) Determine the opportunity cost for both products in Italy.

b) Determine the opportunity cost for both products in France.

c) Which country has the comparative advantage for Food?

d) Which country has the comparative advantage for Clothing?

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