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Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of

Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange

Maximum Feasible Hourly Production Rates of Either Wine or Beef Using All Available Resources

Product

Argentina

France

Wine (gallons)

30

60

Beef (pounds)

10

30

a. is 7 gallons of wine for 1 pound of beef, and Argentina imports beef

b. 0.25 pounds of beef for 1 gallon of wine, and Argentina imports wine.

c. 0.25 gallons of wine for 1 pound of beef, and France imports beef.

d. 0.4 pounds of beef for 1 gallon of wine, and France imports wine.

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