Which country has an absolute advantage in cheese in cars, Other Subject

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Which country has an absolute advantage in cheese in cars

Use the information in the table on labor productivities in France and Germany to answer the following

question

Output per Hour Worked

France: cheese is 1 kilogram, cars is 0.25 car

Germany: cheese is 2 kilograms, cars is 2 cars

a. Which country has an absolute advantage in cheese? In cars?

b. What is the relative price of cheese in France if it does not trade? In Germany, if it does not trade?

c. What is opportunity cost of cheese in France? In Germany?

d. Which country has a comparative advantage in cheese? In cars? Show how you know.

e. What are the upper and lower bounds for the trade price of cheese?

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