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-(Table: Coffee and Salmon Production Possibilities II) Look at the table Coffee and Salmon Production Possibilities II. This table shows the maximum amounts of coffee and salmon, both measured in pounds, that Brazil and Alaska can produce if they just produce one good. Brazil has a comparative advantage in producing:
A)coffee only.
B)salmon only.
C)both coffee and salmon.
D)neither coffee nor salmon.

Question

Use the following to answer questions : 
-(Table: Coffee and Salmon Production Possibilities II) Look at the table Coffee and Salmon Production Possibilities II. This table shows the maximum amounts of coffee and salmon, both measured in pounds, that Brazil and Alaska can produce if they just produce one good. Brazil has a comparative advantage in producing:
A)coffee only. 
B)salmon only. 
C)both coffee and salmon. 
D)neither coffee nor salmon.

Quizplus · Accepted Answer

Brazil has a lower opportunity cost in producing coffee compared to Alaska, meaning they can produce coffee more efficiently than they can produce salmon. Therefore, Brazil has a comparative advantage in producing coffee.

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