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The tables below show two different cases of production costs for Coffee and T-shirts in Guatemala and Costa Rica. The numbers in the table indicate
The tables below show two different cases of production costs for Coffee and T-shirts in Guatemala and Costa Rica. The numbers in the table indicate the number of workers required for a unit of production/output. Case 1: Coffee T-shirts Guatemala 4 Costa Rica 19 10 Case 2: Coffee T-shirts Guatemala 4 Costa Rica 19 10 As can be seen, the only difference between Case 1 and Case 2 is that in Case 1 Guatemala is better at producing Coffee than T-shirts while in Case 2 Guatemala is better at producing T-shirts than Coffee. The numbers for Costa Rica are the same in both situations. Find the comparative advantages for both cases. 3. Guatemala has a comparative advantage in producing Coffee in Case 1 and in producing T-shirts in Case 2. Costa Rica always has a comparative advantage in producing T-shirts. O b. Guatemala has a comparative advantage in producing Coffee in Case 1 and in producing T-shirts in Case 2. Costa Rica has a comparative advantage in producing T-shirts in Case 1 and in producing Coffee in Case 2. Guatemala has a comparative advantage in producing T-shirts in Case 1 and in producing Coffee in Case 2. Costa Rica always has a comparative advantage in producing T-shirts. dGuatemala has a comparative advantage in producing T-shirts in Case 1 and in producing Coffee in Case 2. Costa Rica has a comparative advantage in producing Coffee in Case 1 and in producing T-shirts in Case 2
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