00:01
This question says if nicaragua, a country, can produce the same, with the same amount of resources twice as much coffee as colombia.
00:12
So the amount of resources of coffees nicaragua can produce is twice the amount that colombia can produce.
00:26
Right.
00:27
Explain how colombia could have a comparative advantage in producing coffee.
00:32
So how can colombia have a comparative advantage in producing coffee when nicaragua produces twice amounts with the same resources as colombia? so first of all, when is comparative advantage? when does it occur? a country can have comparative advantage in production of a good if it can produce that good at a lower opportunity cost.
00:56
We respect to other countries.
00:57
So the only way colombia can have comparative advantage is if it's a little way colombia can have comparative advantage is if it's, they can produce the good at a lower opportunity cost than other countries.
01:07
So therefore, colombia, the country colombia, would have competitive advantage in producing coffee if it can produce coffee at a lower opportunity cost in comparison to nicaragua...