A country has a total civilian population (over age 16) of 300 million. Of this population, 225 million are employed, 25 million
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Answer:
other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.
Explanation:
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A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.
The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.
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