This table shows how much cotton and cocoa can be produced in Peru and Brazil with one unit of equivalent resources.
TABLE 32-4
-Refer to Table 32-4.Compared with Peru,Brazil has

Question

This table shows how much cotton and cocoa can be produced in Peru and Brazil with one unit of equivalent resources.
  TABLE 32-4
-Refer to Table 32-4.Compared with Peru,Brazil has

Quizplus · Accepted Answer

Brazil can produce 4 units of cocoa beans per equivalent resource compared to only 2 units produced by Peru. This means that Brazil has an absolute advantage in the production of cocoa beans. Additionally, since Brazil can produce more cocoa beans per unit of resources compared to Peru, Brazil also has a comparative advantage in the production of cocoa beans. However, the table does not provide enough information to determine whether Brazil has an absolute advantage in the production of cotton.

This Table Shows How Much Cotton and Cocoa Can Be