If the Opportunity Cost of Producing a Ton of Coffee

question 5

Multiple Choice

If the opportunity cost of producing a ton of coffee in the U.S. is twenty tons of rice, while the opportunity cost of producing coffee in Costa Rica is two tons of rice,

• A)the U.S. has a comparative advantage in rice production.
• B)Costa Rica has a comparative advantage in rice production.
• C)the U.S. has a comparative advantage in coffee production.
• D)the U.S. would be better off not trading with Costa Rica.

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