Question

suppose italy can make either 1000 statues or 700 bottles of wine suppose the us can make either 100 statues or 900 bottles of wine how should each specilize

Answer 1

 Italy should produce both statues and wine.

Answer 2

America should specializes in making statues, as America has an absolute advantage and comparative advantage in making statues(higher total production, lower opportunity cost of producing statues ), and Italy specializes in producing wine as it has absolute advantage and comparative advantage in producing wine(more total production of wine and lower opportunity cost of producing wine)