(a) Does France, Italy, or neither nation have a comparative advantage in producing grapes? Explain. (b) Assume France and Italy decide to specialize and trade according to their comparative advantages, and
20 bushels of grapes are exchanged for 8 bushels of tomatoes. Are specialization and trade under these
terms beneficial to both France and Italy? Explain.
(C) Suppose the productivity of labor in the production of grapes and tomatoes ir France doubles.
Assuming France experiences constant opportunity cost in the production of the two products, draw a
correctly labeled graph of France's production possibilities curve, with grapes on the horizontal axis and
tomatoes on the vertical axis. Plot the numerical values on the graph and show the effect of doubling labor
productivity
(d) Will the doubling of labor productivity in France change France's absolute advantage, change its
comparative advantage, or change neither? Explain
please asap