Question

Question 19 1 pts Two countries are trying to decide which product should have an increased production. Both Canada and Costa Rica produce coffee and corn, but it is easier for Canada to raise corn than grow coffee. Costa Rica easily grows coffee, but has a more difficult time growing corn. In comparison with Costa Rica, Canada has O the climate to create richer tasting coffee than Costa Rica O the opportunity to increase their coffee production to better compete with Costa Rica O a comparative advantage with corn.

Answer 1

Option C.

Since it is easier for Canada to raise corn than grow coffee, thus, in comparison with Costa Rice, Canada has a comparative advantage with corn. This is because opportunity cost of producing corn in Canada is low as compared to Costa Rice.