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In Latuna, It Takes 10 Resources to Produce 1 Ton

Question 26

Multiple Choice

In Latuna, it takes 10 resources to produce 1 ton of coffee and 13.5 resources to produce 1 ton of wheat. In South Narnia, it takes 40 resources to produce 1 ton of coffee and 12 resources to produce 1 ton of wheat. Latuna has a comparative advantage over South Narnia in


A) both coffee and wheat.
B) coffee
C) wheat
D) both coffee and wheat if combined.
E) neither coffee nor wheat.

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