Final answer:
Comparative advantage is determined by which country has the lower opportunity cost in producing a good. Costa Rica has a comparative advantage in producing sailboats, giving up fewer canoes, and Honduras has a comparative advantage in producing canoes, giving up less of a sailboat. Thus, b) and c) are the correct answers.
Step-by-step explanation:
To determine which country has a comparative advantage in producing canoes and sailboats, we compare the opportunity cost of producing these goods in Costa Rica and Honduras. Comparative advantage is when a country can produce a good at a lower opportunity cost than another country. The opportunity cost is what must be given up to produce an additional unit of a good.
For Costa Rica, the opportunity cost of producing one canoe is 15 hours, which could instead be used to produce 1/4 of a sailboat (since 60 hours are required for one sailboat, 15/60 = 1/4). For Honduras, the opportunity cost of producing one canoe is also 15 hours, but this could instead be used to produce 1/6 of a sailboat (since 90 hours are needed for one sailboat, 15/90 = 1/6).
Therefore, Costa Rica has a higher opportunity cost of 1/4 of a sailboat compared to Honduras' opportunity cost of 1/6 of a sailboat when producing a canoe. Conversely, for sailboats, Costa Rica has a lower opportunity cost of 4 canoes per sailboat (60/15), while Honduras has a higher opportunity cost of 6 canoes per sailboat (90/15).
Hence, Costa Rica has a comparative advantage in producing sailboats since it gives up fewer canoes to make one sailboat. On the other hand, Honduras has a comparative advantage in producing canoes since it gives up less of a sailboat to produce one canoe. Therefore, the correct answer is b) Costa Rica has a comparative advantage in producing sailboats and c) Honduras has a comparative advantage in producing canoes.