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Germany and France can produce the amounts of wine and beer indicated in the table below with one ...

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Germany and France can produce the amounts of wine and beer indicated in the table below with one ...

Germany and France can produce the amounts of wine and beer indicated in the table below with one unit of land. Each country has 10 units of land. Does either country have an absolute advantage? Which country has a comparative advantage in beer production? Which country has a comparative advantage in wine production? Is it possible for the two countries to benefit from trade?

Country   Beer   Wine
France   2   4
Germany   10   1

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Microeconomics

Edition: 8^th

Author: Pindyck

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