Table 3-11
Assume that Bahamas and Denmark can switch between producing coolers and producing radios at a constant rate.

-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

Question

Table 3-11
Assume that Bahamas and Denmark can switch between producing coolers and producing radios at a constant rate.
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-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

Quizplus · Accepted Answer

If Denmark's opportunity cost of one radio is 2 coolers, it matches the opportunity cost of Bahamas, eliminating the comparative advantage and thus the potential for mutually beneficial trade.

Table 3-11 Assume That Bahamas and Denmark Can Switch Between Producing Coolers