contestada

England and France produce cheese and bread. England has a competitive advantage in cheese production.
France has a competitive advantage in bread production. If England places a trade embargo on France, what is
likely to happen with cheese and bread production in each country?
O England will produce more bread and France will produce more cheese.
O England will produce more cheese and France will produce more bread.
O England will produce more cheese and France will produce less bread.
O England will produce less bread and France will produce less cheese.

Respuesta :

If an embargo is placed by England on France, England will produce more bread and France will produce more cheese.

What is a comparative advantage?

A country has comparative advantage in production of a good if it produces at a lower opportunity cost when compared with other countries. Opportunity cost is the cost of the next best option forgone when one option is chosen over other options.

A country that has a comparative advantage in the production of a good should produce that good and import the goods for which it does not have a comparative advantage in its production.

If an embargo is placed, countries would not be able to trade so they would have to increase the production of goods they would have otherwise imported.

To learn more about comparative advantage, please check: https://brainly.com/question/25139916

#SPJ1

Otras preguntas