In Portugal, the opportunity cost of a bale of wool is 3 bottles of wine.In England, the opportunity cost of 1 bottle of wine is 3 bales of wool.Given this information,
A)Portugal has an absolute advantage in wool production.
B)England has an absolute advantage in wine production.
C)Portugal has a comparative advantage in wool production.
D)Portugal has a comparative advantage in wine production.
E)no trade will occur.

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The Answer of In Portugal, the opportunity cost of a bale of wool is 3 bottles of wine.In England, the opportunity cost of 1 bottle of wine is 3 bales of wool.Given this information,
A)Portugal has an absolute advantage in wool production.
B)England has an absolute advantage in wine production.
C)Portugal has a comparative advantage in wool production.
D)Portugal has a comparative advantage in wine production.
E)no trade will occur.

In Portugal, the Opportunity Cost of a Bale of Wool