Suppose that Greece and Sweden both produce rye and cheese. Greece's opportunity cost of producing a pound of cheese is 3 bushels of rye while Sweden's opportunity cost of producing a pound of cheese is 11 bushels of rye. 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 rye. Suppose that Greece and Sweden consider trading cheese and rye with each other. Greece can gain from specialization and trade as long as it receives more than of rye for each pound of cheese it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than of cheese for each bushel of rye it exports to Greece.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.