Suppose that the U.S. can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude

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The U.S. has an absolute advantage in both cars and wine because it can produce more of both with the same amount of labor compared to France. However, the U.S. has a comparative advantage in cars because it sacrifices fewer bottles of wine to produce an additional car (20/15 = 1.33 bottles of wine per car) compared to France (18/10 = 1.8 bottles of wine per car). France has a comparative advantage in wine production because it sacrifices fewer cars to produce an additional bottle of wine (10/18 = 0.56 cars per bottle of wine) compared to the U.S. (15/20 = 0.75 cars per bottle of wine).

Suppose That the U