According to the chart, which country has the comparative advantage in oil production?
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Answer:
Brazil
Explanation:
Only takes Brazil 4 additional worker hours to produce oil over natural gas which is less than the author countries. So, Brazil has the comparative advantage in oil production.
According to this chart the country that has the comparative advantage in the production of oil is Brazil.
From the chart that we have here it is seen that the country only requires 4 hours to produce oil compared to natural gas.
The comparative advantage theory shows the ability of a country to produce goods at a lower opportunity cost compared to other countries.
Brazil has the comparative advantage here.
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