France and the United Kingdom both produce wine and cloth with constant opportunity costs.If opportunity costs in the two countries are different and France has a comparative advantage in wine production,then England MUST have a comparative advantage in cloth production.

Question

Quizplus · Accepted Answer

If France has a comparative advantage in wine production, it must have a lower opportunity cost of producing wine compared to cloth, meaning it could produce wine at a lower relative cost than cloth. Conversely, England must have a higher opportunity cost of producing wine compared to cloth, meaning it could produce cloth at a lower relative cost than wine. Therefore, England has a comparative advantage in cloth production.

France and the United Kingdom Both Produce Wine and Cloth