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Question: suppose that greece and germany both produce rye and wine...

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Suppose that Greece and Germany both produce rye and wine. Greeces opportunity cost of producing a bottle of wine is 4 bushels of rye while Germanys opportunity cost of producing a bottle of wine is 10 bushels of rye By comparing the opportunity cost of producing wine in the two countries, you can tell that Germany production of wine and_Greece has a comparative advantage in the production of rye. has a comparative advantage in the Suppose that Greece and Germany consider trading wine and rye with each other. Greece can gain from specialization and trade as long as it receives more than1 bushelof rye for each bottle of wine it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than 4 bottles of wine for each bushel of rye it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of rye) would allow both Germany and Greece to gain from trade? Check all that apply. O 6 bushels of rye per bottle of wine O 18 bushels of rye per bottle of wine 8 bushels of rye per bottle of wine 1 bushel of rye per bottle of wine Grade It Now Save & Continue Continue without saving

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