Question

Suppose that in France 40 labor hours are required to produce a liter of wine. In Italy, 30 labor hours are required to produce a liter of wine. These figures indicate that A) Italy has an absolute advantage in wine production. B) France has an absolute advantage in wine production. C) Italy has a comparative advantage in wine production. D) France has a comparative advantage in wine production.

Answer 1

I would say the answer is A. Hope this helped!

-Twix

Answer 2

The answer is A

Step-by-step explanation:

From the question stated, two countries France and Italy are required to produce a liter of wine or manufacture a liter of wine for consumption. it takes France 40 labor hours to produce the wine while it takes Italy 30 labor hours to do same.

From what is stated here, Italy has an absolute advantage over France, because it will take them lesser labor hours to produce a liter of wine than France. that is to say 20 labor hours is faster in time than 40 labor hours to produce a liter of wine.