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

**Consider the table and the graph below. Suppose labor is the only factor of productionand wine and dothes the only two goods produced in Italy and France, Italy has 200 units of labor and France has 800 units of labor. The table gives labor productivities. Wie Clothes Italy 10 15 Fr. 6 30 Italy France We Cache a. What is the maximum quantity of wine Italy can produce Point ? b. What is the maximum quantity of clothes France can produce (Point 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 1. 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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