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Tips Suppose that Greece and Switzerland both produce jeans and olives. Greece's opportunity cost of producing a crate of olives is 5 pairs of jeans

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Tips Suppose that Greece and Switzerland both produce jeans and olives. Greece's opportunity cost of producing a crate of olives is 5 pairs of jeans while Tips Switzerland's opportunity cost of producing a crate of olives is 10 pairs of jeans. By comparing the opportunity cost of producing olives In the two countries, you can tell that Greece has a comparative advantage in the production of olives and Switzerland _ has a comparative advantage in the production of jeans. Suppose that Greece and Switzerland consider trading olives and jeans with each other. Greece can gain from specialization and trade as long as It receives more than 5 pairs * of jeans for each crate of olives It exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than 1/10 crate of olives for each pair of jeans 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 jeans) would allow both Switzerland and Greece to gain from trade? Check all that apply. 9 pairs of jeans per crate of olives 2 pairs of jeans per crate of olives 6 pairs of jeans per crate of olives 12 pairs of jeans per crate of olives Grade It Now Save & Continue Continue without saving

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