Scenario 20.1
Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar.
-Refer to Scenario 20.1. What is the opportunity cost of producing coffee in Chile?
A) Half a pound of sugar
B) Two-fifth of a pound of sugar
C) 2 pounds of sugar
D) One-third of a pound of sugar
E) 4 pounds of sugar
Correct Answer:
Verified
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Suppose labor productivity differences are the
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Q44: Scenario 20.2
Suppose labor productivity differences are the
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