The price of trade

Suppose that Slovenia and Norway both produce ale and glass. Slovenia's opportunity cost of producing a pane of glass is $5$ kegs of ale while Norway's

opportunity cost of producing a pane of glass is $10$ kegs of ale.

By comparing the opportunity cost of producing glass in the two countries, you can tell that

$\text{'}.$ has a comparative advantage in the

production of glass and

has a comparative advantage in the production of ale.

Suppose that Slovenia and Norway consider trading glass and ale with each other. Slovenia can gain from specialization and trade as long as it

receives more than

of ale 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 keg of ale it exports to Slovenia.

Based on your answer to the last question, which of the following prices of trade $($that is$,$ price of glass in terms of ale$)$ would allow both Norway and

Slovenia to gain from trade? Check all that apply.

$7$ kegs of ale per pane of glass

$19$ kegs of ale per pane of glass

$2$ kegs of ale per pane of glass

$6$ kegs of ale per pane of glasshfkjhd sfjfhwehfnqkefjlmw;i$,$q;x