Answer: B)150; 0; 100; 50
Explanation:
Based on the information that has been provided in the question, for France to produce a barrel of wine, it'll have an opportunity cost of:
= 100/150 = 0.67 bolts of clothes
For England to produce a barrel of wine, the opportunity cost will be:
= 150/50 = 3 bolts of clothes
Based on the explanation, France has a comparative advantage in wine making as its opportunity cost is lower than that of England.
For France to produce a bolt of cloth, the opportunity cost will be:
= 150/100 = 1.5 barrel of wine
For England to produce a bolt of cloth, the opportunity cost will be:
= 50/150 = 0.33 barrel of wine
Here, England has a comparative advantage in cloth production as its opportunity cost is lower than that of France.
Therefore, we can conclude that France produces 150 units of wine and
0 units of cloth and that France consumes 100 units of wine and 50 units of cloth.
