Ask Question
BusinessBusiness
31 May, 21:22

If Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces, then: A) Brazil has a comparative advantage in automobile production and should specialize in coffee. B) Brazil has a comparative advantage in coffee production and should specialize in the production of automobiles. C) Brazil has a comparative advantage in coffee production and should specialize in coffee production. D) Brazil has a comparative advantage in automobile production and should specialize in automobile production

+5
Answers (1)
  1. 31 May, 21:27
    0
    The correct answer is option C.

    Explanation:

    The opportunity cost for producing a ton of coffee for Brazil is

    = 3 automobiles

    The opportunity cost for producing a ton of coffee for Peru is

    = 7 automobiles

    We see that Brazil has a lower opportunity cost in the production of coffee as compared to Peru.

    A country is considered to be having a comparative advantage in the production of a good if it can produce it at a lower opportunity cost.

    Here, we can say that Brazil has a comparative advantage in the production of coffee and should specialize in coffee production.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is one way in which bonds do not generate income for investors
Answers (1)
Which of the following statements is accurate? Group of answer choices A cost-leadership competitive strategy increases the threat of new entrants by lowering cost-based barriers to entry.
Answers (1)
Jim is the daytime supervisor for an automobile assembly line. He supervises 45 workers who perform routine jobs that require minimal training.
Answers (1)
The number of times an ad is delivered to the same browser in a single session or time period best describe
Answers (1)
What is one main difference between a 401 (k) and a Roth IRA? A 401 (k) is something you can sign up for individually; a Roth IRA is something your employer offers. A 401 (k) does not offer profit sharing options but Roth IRAs do.
Answers (2)
New Questions in Business
Is samsung current and future strategy customer focused?
Answers (1)
New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $500,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%.
Answers (1)
An __ is a government order forbidding exportation and/or importation of a particular product from a particular country
Answers (1)
Every year Indigo Industries manufactures 6,700 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials $ 4 Direct labor 12 Variable manufacturing overhead 5 Fixed manufacturing overhead 10
Answers (1)
A key difference between using multiple production department rates and activity-based costing is a. the multiple production department rate method is used to distribute overhead costs to production activities and activity-based costing is used to
Answers (1)
Home » Business » If Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces, then: A) Brazil has a comparative advantage in automobile production and should specialize in coffee.
Sign Up Forgot Password?