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Question: 5 the price of trade suppose that france and denmark...

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5. The price of trade Suppose that France and Denmark both Denmarks opportunity cost of producing a pound of cheese is 10 barrels of beer. By comparing the opportunity cost of producing cheese in the two countries, you can tell that production of cheese and thas a comparative advantage in the has a comparative advantage in the production of beer Suppose that France and Denmark consider trading cheese and beer with each other. France can gain from specialization and trade as long as it receives more than receives more than ▼ or beer ror each pound or cheese it exports to Denmark. Similarly, Denmark can gain from trade as long as it of cheese for each barrel of beer it exports to France. Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both Denmark and France to gain from trade? Check al that apply. 16 barrels of beer per pound of cheese 2 barrels of beer per pound of cheese 9 barrels of beer per pound of cheese 7 barrels of beer per pound of cheese Grade It Now Sava & Continue Cantinue without saving

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