5. The price of trade Suppose that Greece and Germany both produce beer and olives. Greece's opportunity cost of producing a crate of olives is 4 barrels of beer while Germany's opportunity cost of producing a crate of olives is 9 barrels of beer. By comparing the opportunit cost of uroducing olives in the two countries, you can tell that Greece v has a comparative advantage in the production of olives an_nas a comparative advantage in the production of beer. Suppose that Greece and Germany consider tlading olives and beer with each other. Greece can gain from specialization and trade as long as it receives more than V of beer for each crate of olives it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than V of olives for each barrel of beer it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of beer) would allow both Germany and Greece to gain from trade? Check all that apply. 1 barrel of beer per crate of olives ' 5 barrels of beer per crate of olives ' 6 barrels of beer per crate of olives "7' 3 barrels of beer per crate of olives

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