(Solved): Suppose that Croatia and Slovakia both produce sunflowers and liquor. Croatia's opportunity cost of ...

Suppose that Croatia and Slovakia both produce sunflowers and liquor. Croatia's opportunity cost of producing a case of liquor is 5 bushels of sunflowers while slovakia's oppertunity cost of producing a case of liquor is 11 bushels of sunflowers: By comparing the opportunity cost of producing liquor in the two countries, you can tell that has a comparative advantage in the production of liquor and has a comparative advantage in the production of sunflowers. Suppose that Croatia and Slovakia consider trading liquor and sunflowers with each other. Croatia can gain from specilization and trade as long as it receives more than of sunflowers for each case of liquor it exports to Slovaka. Similarly, Slovakia can gain from trade as long as it. receives more than of liquor for each bushel of sunflowers it exports to Croatia. Based on your answer to the last question, which of the following prices of trade (that is, price of liquor in terms of sunflowers) would allow both Slovakia and Croatia to gain from trade? Check all that apply. 10 bushels of sunflowers per case of liquor 3 bushels of sunflowers per case of liquor 1 bushel of sunflowers per case of Equor 15 bushels of sunflowers per case of liquor