If the price of a banana is twice the price of an apple, then the sale of a banana contributes twice as much to GDP as the sale
1 answer:
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Answer:
7 barrels of oil per pound of cheese
Explanation:
Sweden has a comparative advantage in producing oil while Portugal has a competitive advantage in producing cheese.
In order for the trade to be beneficial to Sweden, it must give up less than 10 barrels of oil for a pound of cheese.
In order for the trade to be beneficial to Portugal, it must accept more than 5 barrels of oil for a pound of cheese.
Therefore, the number of pounds of cheese that would allow both countries to gain is:
The only answer option that fits within the interval is 7 barrels of oil per pound of cheese.