If France is capable of producing cheese, wine, or some combination of those two, it should:
A) produce the good it is more efficient at producing.
B) produce the good for which it has a comparative advantage.
C) produce the good for which it has a higher opportunity cost.
D) remain self-sufficient, as long as it has an absolute advantage at producing both goods.

Question

Quizplus · Accepted Answer

France should produce the good for which it has a comparative advantage. This means that France should produce the good that it can produce at a lower opportunity cost compared to other countries. For example, if France can produce wine at a lower opportunity cost than cheese, it should specialize in producing wine and trade with other countries to obtain cheese. This will lead to a more efficient allocation of resources and higher overall production.

If France Is Capable of Producing Cheese, Wine, or Some