Scenario 20.2 Suppose Labor Productivity Differences Are the Only Determinants of Comparative

Scenario 20.2
Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana produce only corn and cocoa. In Egypt, 10 bushels of corn or 15 pounds of cocoa can be produced in a day. In Ghana, one day of labor can be used to produce either 2 bushels of corn or 8 pounds of cocoa.
-Suppose France can produce 9,000 potatoes or 3,000 lemons per day, and that Italy can produce 3,000 potatoes or 3,000 lemons per day. Which of the following statements in this context is true?

A) France has an absolute advantage in producing lemons.
B) Italy has a comparative advantage in producing potatoes.
C) Italy would be willing to trade one lemon for anything greater than one potato.
D) Both countries would be willing to trade at a rate of one lemon for one potato.
E) France has a comparative advantage in producing lemons.

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