Suppose that France and Switzerland both produce rye and olives.

  1. Suppose that France and Switzerland both produce rye and olives. France’s opportunity cost of producing a crate of olives is 4 bushels of rye while Switzerland’s opportunity cost of producing a crate of olives is 10 bushels of rye.

By comparing the opportunity cost of producing olives in the two countries, you can tell that  ___

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