This table shows how much cotton and cocoa can each be produced in Peru and Brazil with one unit of equivalent resources. TABLE 32-4 Refer to Table 32-4.Compared with Peru,Brazil has

Question

This table shows how much cotton and cocoa can each be produced in Peru and Brazil with one unit of equivalent resources.  TABLE 32-4 Refer to Table 32-4.Compared with Peru,Brazil has

Quizplus · Accepted Answer

Brazil can produce more cocoa beans than Peru with one unit of equivalent resources, indicating an absolute advantage in cocoa production. Additionally, Brazil's opportunity cost of producing cocoa beans (in terms of foregone cotton production) is lower than Peru's, indicating a comparative advantage in cocoa production as well.

This Table Shows How Much Cotton and Cocoa Can Each