Solved

Assume That Honduras Has a Comparative Advantage in Producing Bananas

Question 98

Multiple Choice

Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil.We can conclude that


A) Honduras also has an absolute advantage in producing bananas relative to Brazil.
B) Honduras has a lower opportunity cost of producing bananas relative to Brazil.
C) Brazil has an absolute disadvantage in producing bananas relative to Honduras.
D) Labor costs are higher for banana producers in Brazil than in Honduras.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions