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(Solved): thank you! Suppose that Slovenia and Wales both produce olive oil and broccoll. Slovenia's opportuni ...



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Suppose that Slovenia and Wales both produce olive oil and broccoll. Slovenias opportunity cost of producing a bushel of bro
Suppose that Slovenia and Wales both produce olive oil and broccoll. Slovenia's opportunity cost of producing a bushel of broccoll is 6 crates of olive oil while Wales's opportunity cost of producing a bushel of broccoll is 11 crates of olive oll. By comparing the opportunity cost of producing broccoli in the two countries, you can tell that has a comparative advantage in the production of broccoll and has a comparative advantage in the production of olive oil. Suppose that Slovenia and Wales consider trading broccoli and olive ofl with each other. Slovenia can gain from specialization and trade as long as it recelves more than of olive oll for each bushel of broccoll it exports to Wales. Similarly, Wales can gain from trade as long as it receives more than of broccoli for each crate of olive oil it exports to Slovenia. Based on your answer to the last question, which of the following prices of trade (that is, price of broccoli in terms of ollive oil) would allow both wales and slovenia to gain from trade? Check all that apply. 3 crates of olive oll per bushel of broccoll 8 crates of olive oll per bushel of broccoll 14 crates of olive oil per bushel of broccoli 1 crate of olive oil per bushel of broccoll


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Answer-Step-1-Comparative advantage in production of wheat = Slovenia Comparative advantage in olive oil production = SlovakiaExplanation-The country
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