Asked by
phuong nguyen
on Dec 17, 2024Verified
Refer to Table 3-11. Bahamas and Denmark would not be able to gain from trade if Denmark's opportunity cost of one radio changed to
A) 0 coolers.
B) 1 cooler.
C) 2 coolers.
D) Bahamas and Denmark can always gain from trade regardless of their opportunity costs.
Opportunity Cost
The potential benefit that one misses out on when choosing one alternative over another.
Trade
The activity of buying, selling, or exchanging goods and services between people, firms, or countries.
- Understand the conditions under which countries can benefit from trade.
Verified Answer
MN
Learning Objectives
- Understand the conditions under which countries can benefit from trade.