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If France Is Capable of Producing Either Cheese or Wine

Question 59

Multiple Choice

If France is capable of producing either cheese or wine or some combination of those two products,then:


A) France should produce the one it is more efficient at producing.
B) France should produce the one for which it has a lower opportunity cost.
C) France should produce the one for which is has a higher opportunity cost.
D) France should remain self-sufficient if it has the absolute advantage in the production of both.

Correct Answer:

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