Exhibit 21-4 Coffee and tea output (pounds per hour)

-As shown in Exhibit 21-4,If each country produced according to its comparative advantage,Brazil would produce:

Question

Exhibit 21-4 Coffee and tea output (pounds per hour)
 
-As shown in Exhibit 21-4,If each country produced according to its comparative advantage,Brazil would produce:

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a particular good or service at a lower opportunity cost than another country. Looking at the exhibit, we can see that Brazil has a comparative advantage in producing coffee, as it can produce 1 pound of coffee by giving up only 0.5 pounds of tea. On the other hand, China has a comparative advantage in producing tea, as it can produce 1 pound of tea by giving up only 0.25 pounds of coffee. Therefore, if both countries produce according to their comparative advantage, Brazil would produce coffee and China would produce tea.

Exhibit 21-4 Coffee and Tea Output (Pounds Per Hour)