Colombia produces coffee with less labor and land than any other country; it therefore necessarily has: A. a comparative advantage in coffee production. B. both a comparative and absolute advantage in coffee production. C. an absolute advantage and comparative disadvantage in coffee production. D. an absolute advantage in coffee production

Respuesta :

Answer: Option (d) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.

A country has an absolute advantage in producing a commodity if less resources are required to produce a unit of a commodity as compared to the other country.

Therefore, Colombia has an absolute advantage in producing coffee.