(Table: Coffee and Salmon Production Possibilities II) Use Table: Coffee and Salmon Production Possibilities II.This table shows the maximum amounts of coffee and salmon,both measured in pounds,that Brazil and Alaska can produce if they just produce one good.Brazil has a comparative advantage in producing:

A) coffee only.
B) salmon only.
C) both coffee and salmon.
D) neither coffee nor salmon

Question

Fernando Cardenas · Accepted Answer

Final Answer : A, Explanation :  Brazil has a lower opportunity cost for producing coffee compared to Alaska. In other words, for Brazil to produce one pound of coffee, they only have to give up producing 0.5 pounds of salmon, while Alaska would have to give up producing 1 pound of salmon. Therefore, Brazil has a comparative advantage in producing coffee.

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