Exhibit 15-4 Coffee and tea output (pounds per hour)

As shown in Exhibit 15-4, if each country produced according to its comparative advantage, Brazil would produce:

Question

Exhibit 15-4 Coffee and tea output (pounds per hour)

As shown in Exhibit 15-4, if each country produced according to its comparative advantage, Brazil would produce:

Quizplus · Accepted Answer

According to the exhibit, Brazil has a comparative advantage in producing coffee as it can produce 50 pounds of coffee in one hour compared to only 20 pounds of tea. China, on the other hand, has a comparative advantage in producing tea as it can produce 80 pounds of tea in one hour compared to only 30 pounds of coffee. Therefore, if each country produced according to its comparative advantage, Brazil would produce coffee and China would produce tea.

Exhibit 15-4 Coffee and Tea Output (Pounds Per Hour)