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

**Consider the table and the graph below. Suppose

**Consider the table and the graph below. Suppose labor is the only factor of production, and wine and clothes 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 France 6 30 Italy France Wine Wine D Clothes Clothes a. What is the maximum quantity of wine Italy can produce (Point A)? b. What is the maximum quantity of Clothes France can produce (Point D)? C. Which country has absolute advantage in clothes? d. What is the opportunity cost of clothes in Italy? e. What is the opportunity cost of clothes in France? f. What is the range of relative prices where mutually beneficial trade is possible? What is the pattern of trade if countries specialize according to comparative advantage? g. (Italy or France) ...... imports clothes and h. (Italy or France)....... exports wine. Please label your answers (a. b. c. d. ....h). Answer, if possible, with one word or a number

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