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5. The price of trade Suppose that Croatia and Wales both produce ale and wheat. Croatia's opportunity cost of producing a bushel of wheat is
5. The price of trade Suppose that Croatia and Wales both produce ale and wheat. Croatia's opportunity cost of producing a bushel of wheat is 6 kegs of ale while Wales's opportunity cost of producing a bushel of wheat is 11 kegs of ale. By comparing the opportunity cost of producing wheat in the two countries, you can tell that has a comparative advantage in the production of wheat and has a comparative advantage in the production of ale
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