Suppose that Italy and Denmark both produce beer and olives.

Suppose that Italy and Denmark both produce beer and olives. Italy’s opportunity cost of producing a crate of olives is 3 barrels of beer while Denmark’s opportunity cost of producing a crate of olives is 11 barrels of beer.

By comparing the opportunity cost of producing olives in the two countries, you can tell that ___  has a comparative advantage in the production of olives and ___  has a comparative advantage in the production of beer.

Suppose that Italy and Denmark consider trading olives and beer with each other. Italy can gain from specialization and trade as long as it receives more than ___  of beer for each crate of olives it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than____ of olives for each barrel of beer it exports to Italy.

Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of beer) would allow both Denmark and Italy to gain from trade? Check all that apply.

__13 barrels of beer per crate of olives

__2 barrels of beer per crate of olives

__10 barrels of beer per crate of olives

__1 barrel of beer per crate of olives

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10