Exhibit 21-4 Coffee and tea output (pounds per hour) $$\begin{array} { | l | c | c | }
\hline \text { Country } & \text { Coffee } & \text { Tea } \
\hline \text { Brazil } & 10 & 5 \
\text { China } & 8 & 8 \
\hline
\end{array}$$ As shown in Exhibit 21-4, compared to Brazil, China has a comparative advantage in the production of:

Question

Exhibit 21-4 Coffee and tea output (pounds per hour) $$\begin{array} { | l | c | c | } 
\hline \text { Country } & \text { Coffee } & \text { Tea } \
\hline \text { Brazil } & 10 & 5 \
\text { China } & 8 & 8 \
\hline
\end{array}$$ As shown in Exhibit 21-4, compared to Brazil, China has a comparative advantage in the production of:

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost. Brazil produces coffee at the cost of 0.5 tea (5/10), while China produces coffee at the cost of 1 tea (8/8). For tea, Brazil's opportunity cost is 2 coffee (10/5), and China's is 1 coffee (8/8). Thus, China has a comparative advantage in tea because it has a lower opportunity cost for producing tea compared to Brazil.

Exhibit 21-4 Coffee and Tea Output (Pounds Per Hour) As Shown in Exhibit 21-4, Compared to Brazil, China Has