Solved: Determine comparative advantage. | Economics

Here are the answers to the multiple-choice questions:

Determine comparative advantage.
- Cameroon: Opportunity cost of 1 ton cocoa = $\frac{55 \text{ kg corn}}{75 \text{ tons cocoa}} \approx 0.73 \text{ kg corn}$ .
- Ghana: Opportunity cost of 1 ton cocoa = $\frac{95 \text{ kg corn}}{25 \text{ tons cocoa}} = 3.8 \text{ kg corn}$ .
Cameroon has a lower opportunity cost for cocoa, so it should specialize in cocoa.
Ghana has a lower opportunity cost for corn, so it should specialize in corn.
Step

Determine comparative advantage.