Suppose that in Germany, the opportunity cost of producing a gallon of beer is 5 gallons of wine.In Italy, the opportunity cost of producing a gallon of beer is 3 gallons of wine.
a.What is the opportunity cost of producing a gallon of wine for Germany?
b.What is the opportunity cost of producing a gallon of wine for Italy?
c.Which country has a comparative advantage in the production of beer?
d.Which country has a comparative advantage in the production of wine?

Question

Quizplus · Accepted Answer

The Answer of Suppose that in Germany, the opportunity cost of producing a gallon of beer is 5 gallons of wine.In Italy, the opportunity cost of producing a gallon of beer is 3 gallons of wine.
a.What is the opportunity cost of producing a gallon of wine for Germany?
b.What is the opportunity cost of producing a gallon of wine for Italy?
c.Which country has a comparative advantage in the production of beer?
d.Which country has a comparative advantage in the production of wine?

Suppose That in Germany, the Opportunity Cost of Producing a Gallon