In Colombia, It Takes Three Workers to Produce Two Pounds

question 120

Multiple Choice

In Colombia, it takes three workers to produce two pounds of coffee. In Mexico, it takes four workers to produce one pound of coffee. Therefore:

• A) Colombia has a comparative advantage in the production of coffee.
• B) Mexico has a comparative advantage in the production of coffee.
• C) in Colombia, the opportunity cost of producing one pound of coffee is two-thirds.
• D) Colombia has an absolute advantage in the production of coffee.

---

Definitions:

Corporation

A legal entity recognized by law as a separate "person" that can own assets, incur liabilities, and conduct business, often with the aim of generating profit for its shareholders.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and proportions of interest of each partner in a business venture.

Executive Summary

A concise overview of a document or report, highlighting its main points, conclusions, and recommendations, typically placed at the beginning.

Legal Form

specifies the structure of an organization or entity in legal terms, including options such as sole proprietorship, partnership, corporation, and Limited Liability Company (LLC), each having distinct legal implications.