Question

Watermelon Apples

Country A

12

4

Country B 7

1

Who has Absolute Advantage in producing Apples?


Country B

Country A

All of them


None of them

Answer 1

When comparing two producers, whoever has the lower opportunity cost has the comparative advantage. Producing according to comparative advantage works for individuals, regions, and even countries. Spudville and Appletown can produce both potatoes and apples.

Step-by-step explanation:

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