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. 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
b
Economics
You might also like to view...
A surplus exists
A) in equilibrium. B) when quantity supplied is greater than quantity demanded. C) when quantity supplied is less that quantity demanded. D) at the market clearing price.
Economics
What is the firm's contribution margin?
a. $1800 b. $800 c. $1000 d. $300
Economics
Something is called a barrier to entry only if it makes entry into an industry absolutely impossible
a. True b. False
Economics
If 1 U.S. dollar exchanges for 7.89 South African rand, how much would it cost in rand to purchase a Dell P.C. priced at $795?
What will be an ideal response?
Economics