Answer to Question #177958 in Microeconomics for Alex

Question

suppose that france and germany both produce fish and olives frances opportunity cost of producing a crate of all us is 5 pounds of fish or germany the opportunity cost of producing a crate of olives is 10 pounds of fish study

Answer 1

By comparing the opportunity cost of producing olives in the two countries, you can tell that Germany has a comparative advantage in the production of olives and France has a comparative advantage in the production of fish.