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Homework answers / question archive / Say France is currently producing 3 bottles of wine and 18 lbs of schnitzel, and Germany is producing 3 bottles of wine and 10 lbs of schnitzel
Say France is currently producing 3 bottles of wine and 18 lbs of schnitzel, and Germany is producing 3 bottles of wine and 10 lbs of schnitzel. Assume that France and Germany specialize by producing only the good for which they have a comparative advantage and then trade 3 bottles of wine for 11 lbs of schnitzel. After specializing and trading, France gains how many additional pounds of schnitzel by consuming the same amount of wine? Germany gains how many additional pounds of schnitzel by consuming the same amount of wine?
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