Figure 2-13 Figure 2-13 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.
-Refer to Figure 2-13. Which country has a comparative advantage in the production of coconuts?

Question

Figure 2-13  Figure 2-13 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.
-Refer to Figure 2-13. Which country has a comparative advantage in the production of coconuts?

Quizplus · Accepted Answer

Guatemala has a comparative advantage in the production of coconuts if it can produce them at a lower opportunity cost compared to Costa Rica.

Figure 2-13 Figure 2-13 Shows the Production Possibilities Frontiers