Multiple Choice
Assume that Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces.
A) Brazil has a comparative advantage in automobile production and should specialize in coffee.
B) Brazil has a comparative advantage in coffee production and should specialize in the production of automobiles.
C) Brazil has a comparative advantage in coffee production and should specialize in coffee production.
D) Brazil has a comparative advantage in automobile production and should specialize in automobile production.
Correct Answer:
Verified
Correct Answer:
Verified
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