The price of trade suppose that italy and germany both produce beer and cheese. italy's opportunity cost of producing a pound of cheese is 5 barrels of beer while keep the highest: 13 germany's opportunity cost of producing a pound of cheese is 10 barrels of beer. by comparing the opportunity cost of producing cheese in the two countries, you can tell that ▼ has a comparative advantage in the production of cheese and- ▼ has a comparative advantage in the production of beer suppose that italy and germany consider trading cheese and beer with each other. italy can gain from specialization and trade as long as it receives more tharn more than ▼ of beer for each pound of cheese it exports to germany. similarly, germany can gain from trade as long as it receives ▼ of cheese for each barrel of beer it exports to italy. based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both germany and italy to gain from trade? check all that apply.
8 barrels of beer per pound of cheese
3 barrels of beer per pound of cheese
9 barrels of beer per pound of cheese
1 barrel of beer per pound of cheese