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Suppose that Hungary and Norway both produce beets and glass. Hungary's opportunity cost of producing a pane of glass is 6 bushels of bee's while
Suppose that Hungary and Norway both produce beets and glass. Hungary's opportunity cost of producing a pane of glass is 6 bushels of bee's while Norway's opportunity cost of producing a pane of glass is 11 bushe's of beets. By comparing the opportunity onst of producing glass in the ties countries, you can tell that has a comparative advantage in the production of glass and has a comparative advantage in the production of berts. Suppose that Hungary and Norany consider trading glass and beets with each other. Hungary can gain from specialization and trade as long as It receives more than 7 of beets for each pane of glass it exports to Norway. Similarly, Norway can gain from trade as long as it receives more than of glass for each bushel of beets it exports to Hungary. Based on your answer to the last question, which of the following prices of trade (that is, price of glass in terms of beets) would allow both Norway end Hungary to gain from trade? Check all that apply. _ 1 bushel of beets per pane of glass 7 bushels of hoots per pane of glass : 7 3 bushels of beets per pane of glass _ 4 bushels of beets per pane of glass
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