Business, 24.02.2020 23:50 jimmyjimjim
Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar.
Refer to Scenario 34-1. Which country has a comparative advantage in producing sugar?
Select one:
a. Brazil only
b. Chile only
c. Both countries
d. Neither country
e. It cannot be determined with the information given.
Answers: 3
= 0.4The comparative advantage of Brazil on sugar = 
= 0.5Another question on Business
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