MINDTAP Q Search this course Aplia Homework 1: Interdependence and the Gains fro
ID: 1132425 • Letter: M
Question
MINDTAP Q Search this course Aplia Homework 1: Interdependence and the Gains from Trade Actempts 25 Average: 2513 S. Terms of Suppose that Italy and Switperiand both produce rye and wine. taly's opportunity cost of producing a bottle of Swlteerland's opportunity cest of a 4 bushels of t opportunity cos of poing wine in the teo counanes, you can tel har Seitertndhas a cemperative adventage in production of wine andly has compertive advantage in the produtson of uppose that aly and Switzertand consider treding wine and rye with each other more than 4 bushels ofrye for each botle of wine it experts to Swtaerand more than 1/9 bottleof wine for eech bushe of rye exports to Italy lycn gain from specialration and trade as long as it receives can gain tron trade as leng as & necelives Based on your answer to the laut and Italy to gein from trade? Check all tu apply. question, which of the ulowing prioes of trade hat is price of wine in terms of rye) would allow born Switeerand 13 bushels of rye per bottle of wine of rye per bettle of 3 bushels of ry 2 tab caps lockExplanation / Answer
1) you can tell that, ITALY has a comparative advantage in the production of wine and SWITZERLAND has a comparative advantage in the production of rye.
(because, italy opportunity cost of producing wine is less than the switzerland.)
2) 4 bushles and 1/9 bottles of wine.
3) The asnwer is A, B and C.
that is- 13 bushels of rye per bottle of wine. , 7 bushels of rye per bottle of wine and 6 bushels of rye per bottle of wine.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.