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Chapter 19: Q 18. (page 462)

Why does the United States not have an absolute

advantage in coffee?

Short Answer

Expert verified

Because of the climatic conditions, the United States does not have an absolute advantage in coffee.

Step by step solution

01

Step 1. Definition

The ability to produce a greater quantity of a good or service with the same quantity of inputs por to produce the same quantity of a good or service using a lesser quantity of inputs is referred to as absolute advantage.

02

Step 2. Explanation

The US does not have the favorable geogrpahical conditions that could grow coffee. The appropriate temperature ranging between 25掳C to 30掳C and rainfall between 150-200 cm is not found in the US. Thus, because of the lack of sutiablegeogrpahical condition, the US does not have absolute advantage in production of coffee.

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