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The U.S. and France both enjoy wine and pasta and currently each country produces both goods. The U.S. can produce 10,000 pounds of pasta or
The U.S. and France both enjoy wine and pasta and currently each country produces both goods. The U.S. can produce 10,000 pounds of pasta or 15,000 bottles of wine per month. France can produce 24,000 pounds of pasta or 18,000 bottles of wine per month.
The opportunity cost of pasta is _____ for the U.S. and ________ for France.
The U.S. should specialize in wine or pasta, because it has a absolute advantage or comparative advantage?
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