The following table shows the units of labour necessary to produce one unit of output of...

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The following table shows the units of labour necessary to produce one unit of output of each good (F: Food and C: Car) in two countries (France and Germany). Food Car France Germany Assume that there are 24 work hours in a day. Therefore, in a single day of 24 hours, France can produce 24 1 2. 6 3 umits of For 12 units of C. Similarly, Germany can produce 4 units of F or 8 units of c. Labour cost of producing F is lower in France compared to Germany. And, the labour cost of producing C is lower in France compared to Gemany. This implies that And, Producing one more F in France requires less labour than producing one more C. Similarly, producing one more in C in Germany requires less labour than produıcing one more F. This implies that And, (18) has an absolute advantage in (19) production. (20) has an absolute adantage in _21) production. _(22) has a comparative advantage in (23) production. (24) has a comparative advantage in 25) production. Both countries may gain from trade. Because, trade enables the consumption of bundles outside the (26) of the countries. The following table shows the units of labour necessary to produce one unit of output of each good (F: Food and C: Car) in two countries (France and Germany). Food Car France Germany Assume that there are 24 work hours in a day. Therefore, in a single day of 24 hours, France can produce 24 1 2. 6 3 umits of For 12 units of C. Similarly, Germany can produce 4 units of F or 8 units of c. Labour cost of producing F is lower in France compared to Germany. And, the labour cost of producing C is lower in France compared to Gemany. This implies that And, Producing one more F in France requires less labour than producing one more C. Similarly, producing one more in C in Germany requires less labour than produıcing one more F. This implies that And, (18) has an absolute advantage in (19) production. (20) has an absolute adantage in _21) production. _(22) has a comparative advantage in (23) production. (24) has a comparative advantage in 25) production. Both countries may gain from trade. Because, trade enables the consumption of bundles outside the (26) of the countries.

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18 A France 19 A Food 20 A France 21 B Clothes 22 A France 23 A Food 24 A ... View the full answer