34) Suppose that in Germany, the opportunity cost of produci…
34) Suppose that in Germany, the opportunity cost of producing a gallon of beer is 5 gallons of wine. In Italy, the opportunity cost of producing a gallon of beer is 3 gallons of wine. What is the opportunity cost of producing a gallon of wine for Germany? What is the opportunity cost of producing a gallon of wine for Italy? Which country has a comparative advantage in the production of beer? Which country has a comparative advantage in the production of wine?
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