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

**Consider the table and the graph below. Suppose labor is the only factor of production and wine and dothes the only two foods produced in Italy and France Italy has 1200 units of labor and France has 800 units of labor. The table gives labor productivities We Clothes Italy 10 15 0 30 Italy France Wie D Chules a 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 othes in Italy e. Wat is the opportunity cost of dothes in France What is the range of relative prices where mutually beneficial trade is possible? What is the pattern of trade if countries speciale according to comparative advantage

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