Multiple Choice

-Exhibit EE-4 shows Brazil's and Cuba's production possibilities of sugar and tobacco. Which of the following is true?
A) Brazil has the comparative advantage in the production of tobacco.
B) Brazil has the absolute advantage in the production of tobacco.
C) The opportunity cost of 1 tobacco is 1.25 sugar in Cuba.
D) The opportunity cost of 1 tobacco is .80 sugar in Cuba.
E) The opportunity cost of 1 tobacco is .67 sugar in Brazil.
Correct Answer:
Verified
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