Question

opportunity cost question (attached below)

Answer 1

given

Answer 2

you have absolute advantage in producing bananas and neighbor has absolute advantage in producing coconuts. neighbor also have comparative advantage in producing coconuts?

Answer 3

Comparative advantage occurs when one country can produce a good or service at a lower opportunity cost than another. This means a country can produce a good relatively cheaper than other countries
The theory of comparative advantage states that if countries specialise in producing goods where they have a lower opportunity cost , then there will be an increase in economic welfare.
Therefore the neighbour has a comparative advantage in producing coconuts because it has a lower opportunity cost