Business, 28.08.2021 02:10 SassyChumpkins

Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of the goods that each country can produce in a day. France Germany
Wine (Bottles) Schnitzel (Kilograms) Wine (Bottles) Schnitzel (Kilograms)
0 12 0 25
1 9 1 20
2 6 2 15
3 3 3 10
4 0 4 5
5 0

Suppose that France is currently producing 1 bottle of wine and 9 kilograms of schnitzel and Germany is currently producing 3 bottles of wine and 10 kilograms of schnitzel. Then, assume instead that France and Germany specialize by producing only the good for which they have a comparative advantage and then and then trade 3 bottles of wine for 11 kilograms of schnitzel.

After specialization and trade, France gains by consuming the same amount of wine and additional pounds of schnitzel.

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Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations...