France and Denmark production

Suppose that France and Denmark both produce fish and olives. France’s opportunity cost of producing a crate of olives is 3 pounds of fish while Denmark’s opportunity cost of producing a crate of olives is 11 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell that has a comparative advantage in the production of olives and has a comparative advantage in the production of fish.Suppose that France and Denmark consider trading olives and fish with each other. France can gain from specialization and trade as long as it receives more than of fish for each crate of olives it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than of olives for each pound of fish it exports to France.Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Denmark and France to gain from trade? Check all that apply.2 pounds of fish per crate of olives13 pounds of fish per crate of olives6 pounds of fish per crate of olives4 pounds of fish per crate of olives

We help you get better grades, improve your productivity and get more fun out of college!!

How it works – it’s easy

Y

Place your Order

Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.

Make a payment

The total price of your order is based on number of pages, academic level and deadline.

i

Writing process

We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to make sure that the assignment meets all of your requirements.

Once complete, we’ll send your assignment via the email provided on the order form.

 

 

Achieve academic success with the best online tutors.