Suppose That, in a Classical Model with Two Goods, Germany

Multiple Choice

Suppose that, in a Classical model with two goods, Germany can produce 50 units of steel with one day of labor and 30 units of textiles with one day of labor; Switzerland can produce 45 units of steel with one day of labor and 45 units of textiles with one day of labor. If the exchange rate is fixed at 1 Swiss franc = 1 euro and if the Swiss wage rate is 10 francs per day, then, in trading equilibrium, German wages

A) must be greater than 10 euros per day.
B) must be less than 10 euros per day.
C) must be equal to 10 euros per day.
D) can be above, below, or equal to 10 euros per day - cannot be determined without More information.