Question
Asked Feb 2, 2020
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2. An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes.

d) Assume that the two countries trade and that the country importing coffee trades 2 ounces of soybeans for 1 ounce of coffee. Explain why both countries will benefit from this trade.

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Expert Answer

Step 1

If brazil make 2 ounces of soybeans and Peru make 1 ounce of coffee, then it takes

Economics homework question answer, step 1, image 1

 

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