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 cheese will lie between _____ and _____.
A) 0.5 gallons of wine per pound;1 gallon of wine per pound
B) 2 gallons of wine per pound; 4 gallons of wine per pound
C) 0.25 gallons of wine per pound; 2 gallons of wine per pound
D) 1 gallon of wine per pound; 4 gallons of wine per pound
Correct Answer:
Verified
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