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In southern California, there are banana plantations. These plantations cannot produce all the bananas consumed by persons in the U.S. The fact that the U.S. grows and sells bananas gives it a comparative advantage in bananas. It is not an absolute advantage and that is why we choose to import bananas from other countries, as well. true false

1 Answer

3 votes

Answer:

False

Step-by-step explanation:

The Given Statement is False because the US does not have a comparable advantage or absolute advantage in Bananas. US cannot produce bananas as efficiently as other nations ( comparative advantage) and The US is not the only nation in the world to produce bananas. This called absolute advantage.

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User Red Alert
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