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Chapter 33: Q.18 (page 804)

Why does the United States not have an absolute advantage in coffee?

Short Answer

Expert verified

Because it does not have the required climate.

Step by step solution

01

Step 1. Definition

Absolute advantage refers to the ability of a person, firm, or region to produce a product at a comparatively lower cost or to produce more output at the same cost.

02

Step 2, Explanation

The US does not have an absolute advantage in the production of Coffee because it does not possess the climate required for coffee production. An ideal temperature between 20°to27°Celsius is required along with a rainfall of 100 cm to 200 cm annually.

These conditions are not present in the US, thus it cannot have an absolute advantage in coffee production.

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