Brazil is almost self-sufficient in ethanol. Brazilian ethanol is made from sugar and costs 83 per gallon

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Brazil is almost self-sufficient in ethanol. Brazilian ethanol is made from sugar and costs 83¢ per gallon whereas U.S. ethanol, made from corn, costs $1.14 per gallon. The United States does not import ethanol.

Which country has a comparative advantage in producing ethanol? Explain why both the United States and Brazil can gain from specialization and trade.

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Foundations Of Microeconomics

ISBN: 9780133477108

7th Edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Feb 15, 2024 08:01 AM

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Brazil is almost self-sufficient in ethanol. Brazilian ethanol is made from sugar and costs 83 per gallon

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The cost of producing a gallon of ethanol is less in Brazil than in the Unite...View the full answer

Foundations Of Microeconomics

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