Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of the goods that each country can produce in a day:
France:
Wine (Bottles) | Schnitzel (Pounds)
0 | 8
1 | 6
2 | 4
3 | 2
4 | 0
Germany:
Wine (Bottles) | Schnitzel (Pounds)
0 | 25
1 | 20
2 | 15
3 | 10
4 | 5
5 | 0
Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel?
A. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine.
B. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel.
C. Germany has a comparative advantage producing wine and schnitzel.
D. Neither has a comparative advantage producing wine or schnitzel.
E. France has a comparative advantage producing wine and schnitzel.
Suppose that France is currently producing 1 bottle of wine and 6 pounds of schnitzel, and Germany is currently producing 3 bottles of wine and 10 pounds of schnitzel. Then, assume instead 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 12 pounds of schnitzel.
After specialization and trade, France gains by consuming the same amount of wine and 6 additional pound(s) of schnitzel (enter a numeric response using an integer), and Germany gains by consuming the same amount of wine and 3 additional pound(s) of schnitzel.