New England possessed a comparative advantage in producing cotton.Producers in this region produced cotton at the lowest possible opportunity cost in colonial America.

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New England did not have a comparative advantage in producing cotton due to its climate and soil conditions, which were more suitable for other crops such as fishing, livestock, manufacturing, and trade. The southern colonies, particularly Virginia, Maryland, and the Carolinas, were the main producers of cotton and other cash crops like tobacco, rice, and indigo, using slave labor and exporting their products to Europe and other colonies.

New England Possessed a Comparative Advantage in Producing Cotton