Assume that because of soil and climatic conditions, Brazil is more efficient in the production of coffee than the United States. At the same time, the United States is more efficient in the production of apples than Brazil. Each of these countries can be said to have a(n) _____.
a. absolute advantage
b. factor endowment destruction in land
c. bartering disadvantage
d. mercantile disadvantage
e. comparative advantage
A country is said to have comparative advantage in the production of a good when it produces the good more efficiently when compared with other countries.
