Suppose that Portugal and Switzerland both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4 barrels of beer while Switzerland's opportunity cost of producing a pane of stained glass is 10 barrels of beer. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that (a. Portugal, b. Switzerland) has a comparative advantage in the production of stained glass and (a. Portugal, b. Switzerland) has a comparative advantage in the production of beer. Suppose that Portugal and Switzerland consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as long as it receives more than ____ of beer for each pane of stained glass it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than ____ of stained glass for each barrel of beer it exports to Portugal. Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow both Switzerland and Portugal to gain from trade? Check all that apply. 7 barrels of beer per pane of stained glass 16 barrels of beer per pane of stained glass 2 barrels of beer per pane of stained glass 9 barrels of beer per pane of stained glass Suppose that Portugal and Switzerland both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4barrels of beer while Switzerland's opportunity cost of producing a pane of stained glass is 10 barrels of beer.By comparing the opportunity cost of producing stained glass in the two countries, you can tell thatthe production of stained glass andhas a comparative advantage in the production of beer.has a comparative advantage InSuppose that Portugal and Switzerland consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as longas it receives more thanof beer for each pane of stained glass it exports to Switzerland. Similarly, Switzerland can gain from tradeof stained glass for each barrel of beer it exports to Portugal.as long as it receives more thanBased on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow bothSwitzerland and Portugal to gain from trade? Check all that apply.7 barrels of beer per pane of stained glass16 barrels of beer per pane of stained glass2 barrels of beer per pane of stained glass9 barrels of beer per pane of stained glass

Question

Suppose that Portugal and Switzerland both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4 barrels of beer while Switzerland's opportunity cost of producing a pane of stained glass is 10 barrels of beer. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that (a. Portugal, b. Switzerland) has a comparative advantage in the production of stained glass and (a. Portugal, b. Switzerland) has a comparative advantage in the production of beer. Suppose that Portugal and Switzerland consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as long as it receives more than ____  of beer for each pane of stained glass it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than ____ of stained glass for each barrel of beer it exports to Portugal. Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow both Switzerland and Portugal to gain from trade? Check all that apply. 7 barrels of beer per pane of stained glass 16 barrels of beer per pane of stained glass 2 barrels of beer per pane of stained glass 9 barrels of beer per pane of stained glass Suppose that Portugal and Switzerland both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4barrels of beer while Switzerland's opportunity cost of producing a pane of stained glass is 10 barrels of beer.By comparing the opportunity cost of producing stained glass in the two countries, you can tell thatthe production of stained glass andhas a comparative advantage in the production of beer.has a comparative advantage InSuppose that Portugal and Switzerland consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as longas it receives more thanof beer for each pane of stained glass it exports to Switzerland. Similarly, Switzerland can gain from tradeof stained glass for each barrel of beer it exports to Portugal.as long as it receives more thanBased on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow bothSwitzerland and Portugal to gain from trade? Check all that apply.7 barrels of beer per pane of stained glass16 barrels of beer per pane of stained glass2 barrels of beer per pane of stained glass9 barrels of beer per pane of stained glass

Accepted Answer

The countries involve in trade. Trade is very beneficial for all countries. It improves the market.…