Assume,for Colombia,that the domestic price of coffee without international trade is higher than the world price of coffee.This suggests that
A)other countries have a comparative advantage over Colombia in producing coffee.
B)Colombia has an absolute advantage over other countries in producing coffee.
C)Colombia will export coffee if international trade is allowed.
D)Colombian coffee buyers will become worse off if international trade is allowed.

Question

Quizplus · Accepted Answer

Colombia's higher domestic price compared to the world price suggests that other countries can produce coffee more efficiently, indicating they have a comparative advantage.

Assume,for Colombia,that the Domestic Price of Coffee Without International Trade