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Carmen wants to open her own coffee shop. She has narrowed down a list of wholesale retailers and their cost
per pound of coffee beans,
Whole Sale Company
Cost per lb.
Café con Leche
$8.50
Beans Brothers
$7.50
Colombian Co.
$11.25
Turkish Coffee Company
$6.25
Which company has the comparative advantage in cost per pound of coffee?
Café con Leche

Respuesta :

rebekahschrader2

Answer:

Turkish Coffee Company

Explanation:

It has the lowest production cost at $6.25.

fichoh

The Turkish coffee shop offers a lower price per pound of coffee than it's competitors. This means that the Turkish coffee shop has a greater comparative advantage than it's rivals.

  • The comparative advantage infers that a certain organization is able to spend lesser than it's rivals on production.

  • This lesser production cost will then enable this organization to sell at a cheaper price than its competitors

  • This means higher patronage and sales, meaning greater revenue.

Therefore, the company with comparative advantage in cost per pound of coffee is the Turkish coffee shop.

Learn more :https://brainly.com/question/13221821?referrer=searchResults

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