macroeconomics
posted by ann .
Suppose that France and Denmark both produce oil and olives. Frances’s opportunity cost of producing a crate of olives is 4 barrels of oil, while Denmark’s opportunity cost of producing a crate of olives is 7 barrels of oil.
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 oil.
Suppose that France and Denmark consider trading olives and oil with each other. France can gain from specialization and trade as long as it receives more than _____ of oil 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 barrel of oil it exports to France.
Based on your answer to the last question, which of the following terms of trade (that is, price of olives in terms of oil) would allow both Denmark and France to gain from trade? Check all that apply.
__ 6 barrels of oil per crate of olives
__ 3 barrels of oil per crate of olives
__ 5 barrels of oil per crate of olives
__ 8 barrels of oil per crate of olives
Respond to this Question
Similar Questions

math!
an oil well produceds 2500 barrels of oil during its firt month of production. The oil company predicts its production will drop 5% each month thereafter. how many barrels of iol will this company produce in its first yeear? 
Probability
Daily output of Marathon's Garyville, Lousiana, refinery is normally distributed with a mean of 232,000 barrels of crude oil per day with a standard deviation of 7,000 barrels. Find the probability of producing.. a. at least 232,000 … 
Process Technology
How many minutes will it take for an oil well producing 350 barrels of oil per day to fill a 14 foot diameter by 49 foot tall tank? 
Statistics
Daily output of Marathon’s Garyville, Lousiana, refinery is normally distributed with a mean of 232,000 barrels of crude oil per day with a standard deviation of 7,000 barrels. (a) What is the probability of producing at least 232,000 … 
math
Tema Oil Refinery ( TOR ) is the only company mandated to refine crude oil in Ghana. The company has estimated that the fixed cost would be $ 80000. Variable costs depends on the amount of crude oil refined but include the cost of … 
Vba
I'm trying to write a sub that asks how much oil I made, and then gives me number of barrels needed to hold oil, cost of producing oil, and profit from oil. This is what I have so far, I'm not sure what to do. Sub Oil() Dim barrels … 
3rd Grade
Casey has 10 olives to eat. She wants to have the same number of olives at lunch and at dinner. She wonders how many olives she should eat at each meal. Which number sentence fits this problem? 
Statistics
Daily output of Marathon's Grayville, LA, Refinery is normally Distributed with a mean of 232,000 barrels of crude oil per day with a standard deviation of 7,000 barrels. a. what is the probability of producing at least 232,000 barrels? 
Math
An oil company owns two refineries. The daily production limits and operating costs for each refinery are given in the table below. An order is received for 1540 barrels of highgrade oil, 1650 barrels of mediumgrade oil, and 2860 … 
math
An oil company operates two Southern refineries. The Alabama facility produces 500 barrels of highgrade oil and 200 barrels of mediumgrade oil per day. The Texas facility produces 600 barrels of highgrade and 400 barrels of mediumgrade …