Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?
A) Columbia has a comparative advantage in producing papayas but not bananas.
B) Columbia has a comparative advantage in producing papayas and bananas.
C) These countries would increase combined consumption if they specialized and traded.
D) These countries cannot gain from trading.

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The Answer of Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?
A) Columbia has a comparative advantage in producing papayas but not bananas.
B) Columbia has a comparative advantage in producing papayas and bananas.
C) These countries would increase combined consumption if they specialized and traded.
D) These countries cannot gain from trading.

Suppose That in Colombia One Unit of Labor Can Produce