Suppose France can produce 9,000 potatoes or 3,000 lemons per day, and that Ital

Question

Suppose France can produce 9,000 potatoes or 3,000 lemons per day, and that Italy can produce 3,000 potatoes or 3,000 lemons per day. Which of the following statements in this context is true? a. Both countries would be willing to trade at a rate of one lemon for one potato. b. Italy has a comparative advantage in producing potatoes. c. France has a comparative advantage in producing lemons. d. France has an absolute advantage in producing lemons. e. Italy would be willing to trade one lemon for anything greater than one potato.

Explanation / Answer

E is Correct Because Itlay is not better at prducing Potatoes.

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