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Suppose that Poland and Liechtenstein both produce sunflowers and shoes. Poland's opportunity cost of producing a pair of shoes is 6 bushels of sunflowers while

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Suppose that Poland and Liechtenstein both produce sunflowers and shoes. Poland's opportunity cost of producing a pair of shoes is 6 bushels of sunflowers while Liechtenstein's opportunity cost of producing a pair of shoes is 12 bushels of sunflowers. By comparing the opportunity cost of producing shoes in the two countries, you can tell that Poland has a comparative advantage in the production of shoes and Liechtenstein _ has a comparative advantage in the production of sunflowers. Suppose that Poland and Liechtenstein consider trading shoes and sunflowers with each other. Poland can gain from specialization and trade as long as it receives more than 6 bushels of sunflowers for each pair of shoes it exports to Liechtenstein. Similarly, Liechtenstein can gain from trade as long as it receives more than 1/12 pair _ of shoes for each bushel of sunflowers it exports to Poland. Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of sunflowers) would allow both Liechtenstein and Poland to gain from trade? Check all that apply. 19 bushels of sunflowers per pair of shoes 1 bushel of sunflowers per pair of shoes 11 bushels of sunflowers per pair of shoes 3 bushels of sunflowers per pair of shoes

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