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If the Opportunity Cost of Producing a Ton of Coffee

Question 44

Multiple Choice

If the opportunity cost of producing a ton of coffee in the U.S. is twenty tons of rice, while the opportunity cost of producing coffee in Costa Rica is two tons of rice,


A) the U.S. has a comparative advantage in rice production.
B) Costa Rica has a comparative advantage in rice production.
C) the U.S. has a comparative advantage in coffee production.
D) the U.S. would be better off not trading with Costa Rica.

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