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. Calculate the opportunity cost of producing sugar in Brazil
a. Half a pound of coffee
b. 4 pounds of coffee
c. 1 pound of coffee
d. 2 pounds of coffee
e. One and a half pounds of coffee
d
Economics
You might also like to view...
Explain how our economic welfare depends upon our level of real GDP per person but there might not be a one-to-one relationship between economic welfare and real GDP per person. Give examples of things that can effect one but not the other
What will be an ideal response?
Economics
Speculation is the opposite of hedging
Indicate whether the statement is true or false
Economics