suppose that italy and denmark both produce oil and stained glass. itlay\'s oppo

Question

suppose that italy and denmark both produce oil and stained glass.

itlay's opportunity cost of producing a pane of stained glass is 4 barrels of oil while denmarks opportunity cost of producing a pane of stained glass is 7 barrels of oil.by compaing the opportunity costs of producing stained glass in the two countries, you can tell that ______ has a comparative advantage in the production of the stained glasss and ____ has a comparatice advantage in the production of oil.

suppose italy and denmark consider trading stained glass and oil with each other. italy can gain from specialization and trade as long as it receives more than _____. of oil for each pane . denmark can gain from trade as long as it receives more than _____ of stained glass.

Explanation / Answer

Italy, Denmark

4 barrels, 1/7 pane

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