Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Suppose that a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has an absolute advantage at:

Question

Quizplus · Accepted Answer

Country B has an absolute advantage in producing tomatoes because a worker can produce 6 tomatoes each year, which is more than the 5 tomatoes a worker in Country A can produce. However, Country A has an absolute advantage in producing bananas, as a worker there can produce 25 bananas, more than the 18 bananas a worker in Country B can produce.

Suppose That a Worker in Country a Can Produce Either