To determine which company has the comparative advantage in cost per pound of coffee, we need to compare the cost per pound offered by each company and find the one with the lowest cost. Here is the given table of costs:
\begin{tabular}{|l|l|}
\hline Whole Sale Company & Cost per lb. \\
\hline Café con Leche & \[tex]$8.50 \\
\hline Beans Brothers & \$[/tex]7.50 \\
\hline Colombian Co. & \[tex]$11.25 \\
\hline Turkish Coffee Company & \$[/tex]6.25 \\
\hline
\end{tabular}
Step-by-Step Solution:
1. Determine the cost per pound for each company:
- Café con Leche: \[tex]$8.50 per pound
- Beans Brothers: \$[/tex]7.50 per pound
- Colombian Co.: \[tex]$11.25 per pound
- Turkish Coffee Company: \$[/tex]6.25 per pound
2. Compare these costs to find the minimum:
- Compare \[tex]$8.50 (Café con Leche) with \$[/tex]7.50 (Beans Brothers).
- \[tex]$7.50 is lower than \$[/tex]8.50.
- Compare \[tex]$7.50 (Beans Brothers) with \$[/tex]11.25 (Colombian Co.).
- \[tex]$7.50 is lower than \$[/tex]11.25.
- Compare \[tex]$7.50 (Beans Brothers) with \$[/tex]6.25 (Turkish Coffee Company).
- \[tex]$6.25 is lower than \$[/tex]7.50.
3. The lowest cost per pound is \$6.25.
Thus, the company with the comparative advantage in cost per pound of coffee is:
Turkish Coffee Company
