3 workers

In this example, France has an absolute advantage in the production of both sweaters and wine. You can

tell because it takes France less labor to produce a unit of the good.

4. a.

In Germany, it takes fewer workers to make either a television or a video camera. Germany has an

absolute advantage in the production of both goods.

b. Producing an additional television in Germany requires three workers. Shifting those three German

workers will reduce video camera production by 3/4 of a camera. Producing an additional television

set in Poland requires six workers, and shifting those workers from the other good reduces output of

video cameras by 6/12 of a camera, or 1/2. Thus, the opportunity cost of producing televisions is lower

in Poland, so Poland has the comparative advantage in the production of televisions. Note: Do not let

the fractions like 3/4 of a camera or 1/2 of a video camera bother you. If either country was to expand
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