subject
Business, 20.02.2020 01:40 nickolasbradyp0hvwl

Suppose that Italy and Switzerland both produce rye and wine. Italy's opportunity cost of producing a bottle of wine is 5 bushels of rye while Switzerland's opportunity cost of producing a bottle of wine is 10 bushels of rye.

By comparing the opportunity cost of producing wine in the two countries, you can tell that, ITALY or SWITZERLAND, has a comparitive advantage in the production of wine and, ITALY or SWITZERLAND, has a comparative advantage in the production of rye.

Suppose that Italy and Switzerland consider trading wine and rye with each other. Italy can gain from specialization and trade as long as it receives more than.

a.1 bushel

b.1/10 bushel

c.1/5 bushel

d.5 bushels

e.10 bushels

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

a.12 bushels of rye per bottle of wine

b.1 bushel of rye per bottle of wine

c.2 bushels of rye per bottle of wine

d.6 bushels of rye per bottle of wine

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 09:30
When you hire an independent contractor you don't have to pay the contractors what
Answers: 3
question
Business, 22.06.2019 20:20
Carmen’s beauty salon has estimated monthly financing requirements for the next six months as follows: january $ 9,000 april $ 9,000 february 3,000 may 10,000 march 4,000 june 5,000 short-term financing will be utilized for the next six months. projected annual interest rates are: january 9 % april 16 % february 10 may 12 march 13 june 12 what long-term interest rate would represent a break-even point between using short-term financing and long-term financing?
Answers: 3
question
Business, 22.06.2019 21:00
Suppose either computers or televisions can be assembled with the following labor inputs: units produced 1 2 3 4 5 6 7 8 9 10 total labor used 3 7 12 18 25 33 42 54 70 90 (a) draw the production possibilities curve for an economy with 54 units of labor. label it p54. (b) what is the opportunity cost of the eighth computer? (c) suppose immigration brings in 36 more workers. redraw the production possibilities curve to reflect this added labor. label the new curve p90.
Answers: 2
question
Business, 23.06.2019 07:50
How do you know if two line segments are perpendicular?
Answers: 1
You know the right answer?
Suppose that Italy and Switzerland both produce rye and wine. Italy's opportunity cost of producing...
Questions
question
Mathematics, 09.03.2021 17:20
question
Mathematics, 09.03.2021 17:20
question
Mathematics, 09.03.2021 17:20