Argentina can produce 2 pounds of coffee OR 1 bottle of wine. Brazil can produce 5 pounds of coffee OR 1 bottle of wine. Which country has a comparative advantage in the production of wine?   a. both Argentina and Brazil. b. Argentina. c. neither Argentina nor Brazil. d. Brazil.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...
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Argentina can produce 2 pounds of coffee OR 1 bottle of wine. Brazil can produce 5 pounds of coffee OR 1 bottle of wine. Which country has a comparative advantage in the production of wine?   a. both Argentina and Brazil. b. Argentina. c. neither Argentina nor Brazil. d. Brazil.
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