France and England both produce wine and clothing with constant opportunity costs.France will have a comparative advantage in wine production if:

Question

Quizplus · Accepted Answer

Comparative advantage is determined by the opportunity cost of producing a good. If France has a lower opportunity cost of producing wine than England (i.e. it has to give up less clothing production to produce wine), then it has a comparative advantage in wine production. Therefore, choice D is the correct answer.

France and England Both Produce Wine and Clothing with Constant