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#1
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A French worker can produce either 4 barrels of wine or 16 shirts a week; an Italian worker can produce either 10 barrels of wine or 20 shirts a week. After the countries begin to trade, one barrel of wine will cost between four and eight shirts. France has an absolute advantage in both wine and shirts. France will export shirts and import wine. France has an absolute advantage in making shirt Under the principle of comparative advantage, total output is greatest when each product is made by the country that: enjoys an absolute advantage. has the lowest wage rates. has the lowest degree of specialization. has the lowest opportunity cost.
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#3
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It's already decided productivity per worker for youFrance4W=16S1W=4S1S=1/4WItaly10W=20S1W=2S1S=1/2WItaly produces WineFrance produces ShirtsFrance will export shirts and import wine2nd one.. lowest opportunity cost
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