Coffee Salmon Brazil 40 20 Argentina 10 15 The table above shows the maximum amounts of coffee and salmon that Brazil and Argentian can produce if they produce just one good. Evaluate the following statements and point which of them are true: 1. If Brazil has a comparative advantage in coffee production 2. In Brazil, the marginal cost of salmon production is 2 units of coffee 3. In Argentina the marginal cost of coffee production is 1 1/2 units of salmon Which are correct.
Coffee Salmon Brazil 40 20 Argentina 10 15 The table above shows the maximum amounts of coffee and salmon that Brazil and Argentian can produce if they produce just one good. Evaluate the following statements and point which of them are true: 1. If Brazil has a comparative advantage in coffee production 2. In Brazil, the marginal cost of salmon production is 2 units of coffee 3. In Argentina the marginal cost of coffee production is 1 1/2 units of salmon Which are correct.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section: Chapter Questions
Problem 5PA
Related questions
Question
Coffee | Salmon | |
Brazil | 40 | 20 |
Argentina | 10 | 15 |
The table above shows the maximum amounts of coffee and salmon that Brazil and Argentian can produce if they produce just one good.
Evaluate the following statements and point which of them are true:
1. If Brazil has a
2. In Brazil, the marginal cost of salmon production is 2 units of coffee
3. In Argentina the marginal cost of coffee production is 1 1/2 units of salmon
Which are correct.
A. 1, 2, and 3
B. 2 and 3 Only
C. 1 and 3 only
D. 1 and 2 only
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