Question: **Consider the table and the graph below. Suppose labor is the only factor of production, and wine and dothes the only two goods produced in

**Consider the table and the graph below. Suppose labor is the only factor of production, and wine and dothes the only two goods produced in Italy and France, Italy has 1200 units of labor and France has 800 units of labor. The table gives labor productivities Wine Clothes Italy 10 15 Free 0 JO taly France Clu What is the maimum quantity of wine Italy can produce (Point A What is the maximum quantity of Clothes France can produce Point ? Which country has absolute advantage in dothes? d. What is the opportunity cost of others in Italy e. What is the opportunity cost of dothes in France What is the range of relative prices where mutually beneficiarde is possible Wat is the pattern of trade if countries speciale according to comparative advantage

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