1. **State the problem:** Determine which country, Chile or Colombia, has a comparative advantage in producing soybeans or coffee based on their Production Possibilities Frontiers (PPFs). 2. **Recall the concept:** Comparative advantage means a country can produce a good at a lower opportunity cost than the other. 3. **Analyze Chile's PPF:** - Chile can produce up to 12 pounds of soybeans if it produces 0 coffee. - Chile can produce up to 16 pounds of coffee if it produces 0 soybeans. - Opportunity cost of 1 pound of coffee in terms of soybeans for Chile is $$\frac{12}{16} = 0.75$$ pounds of soybeans. - Opportunity cost of 1 pound of soybeans in terms of coffee for Chile is $$\frac{16}{12} = 1.33$$ pounds of coffee. 4. **Analyze Colombia's PPF:** - Colombia can produce up to 6 pounds of soybeans if it produces 0 coffee. - Colombia can produce up to 12 pounds of coffee if it produces 0 soybeans. - Opportunity cost of 1 pound of coffee in terms of soybeans for Colombia is $$\frac{6}{12} = 0.5$$ pounds of soybeans. - Opportunity cost of 1 pound of soybeans in terms of coffee for Colombia is $$\frac{12}{6} = 2$$ pounds of coffee. 5. **Compare opportunity costs:** - Coffee: Chile's cost is 0.75 soybeans, Colombia's cost is 0.5 soybeans. Colombia has lower opportunity cost producing coffee. - Soybeans: Chile's cost is 1.33 coffee, Colombia's cost is 2 coffee. Chile has lower opportunity cost producing soybeans. 6. **Conclusion:** Chile has a comparative advantage in soybeans and Colombia has a comparative advantage in coffee. **Final answer:** Chile has a comparative advantage in soybeans and Colombia has a comparative advantage in coffee.