Question: which one is correct? Assume a Ricardian model with two countries: The Netherlands and France. The Netherlands: Labor supply is 200 units. The unit labor

which one is correct?

Assume a Ricardian model with two countries: The Netherlands and France. The Netherlands: Labor supply is 200 units. The unit labor requirement to produce wine is 4. The unit labor requirement to produce cheese is 1. France: Labor supply is 600 units. The unit labor requirement to produce wine is 5. The unit labor requirement to produce cheese is 25. If the relative price of wine in terms of cheese, PW / PC, is 2, how much wine will be supplied on the world market? Select one alternative: 0 120 0 None of the other answers is correct. 050 OD

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