Suppose that Portugal and Sweden both produce beer and olives. Portugal's opportunity cost of producing a crate of olives is 4 barrels of beer while Sweden's opportunity cost of producing a crate of olives is 10 barrels of beer.

By comparing the opportunity cost of producing olives in the two countries, you can tell that? has a comparative advantage in the production of olives and ?has a comparative advantage in the production of beer.

Suppose that Portugal and Sweden consider trading olives and beer with each other. Portugal can gain from specialization and trade as long as it receives more than ?of beer for each crate of olives it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than ?of olives for each barrel of beer it exports to Portugal.

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 Sweden and Portugal to gain from trade?

A)2 barrels of beer per crate of olives

B)18 barrels of beer per crate of olives

C)1 barrel of beer per crate of olives

D) 8 barrels of beer per crate of olives