The table given below shows the number of labor hours required to produce 1 gallon of wine and 1 pound of cheese in the U.S. and France. If the U.S. and France engage in free trade with each other, the international price of wine will lie between _____ and _____.
A) 1 pound of cheese per gallon; 4 pounds of cheese per gallon
B) 0.5 pounds of cheese per gallon; 4 pounds of cheese per gallon
C) 1 pound of cheese per gallon; 2 pounds of cheese per gallon
D) 0.5 pounds of cheese per gallon; 2 pounds of cheese per gallon
Correct Answer:
Verified
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