France and England both produce wine and cloth with constant opportunity costs.France can produce 150 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine.England can produce 50 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine.Using this information,we can conclude that:

A) France has a comparative advantage in cloth production.
B) England has a comparative advantage in cloth production.
C) France has a comparative advantage in both goods.
D) mutually beneficial international trade is not possible.

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Jadia Robinson · Accepted Answer

Final Answer : B, Explanation :  England has a lower opportunity cost of producing cloth, as it can produce 100 bolts of cloth compared to France's 100 bolts only at the cost of giving up on producing 50 barrels of wine. Therefore, England has a comparative advantage in cloth production. France has a comparative advantage in wine production, as it can produce 150 barrels of wine compared to England's 50 barrels only at the cost of giving up on producing 100 bolts of cloth. Since both countries have a comparative advantage in different goods, mutually beneficial international trade is possible.

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