Suppose Canada could produce 4 tonnes of potatoes or 2 tonnes of wheat per worker per year,while Ireland could produce 3 tonnes of potatoes or 2 tonnes of wheat per worker per year.What country has the comparative advantage and the absolute advantage in producing potatoes?

Question

Quizplus · Accepted Answer

Canada has the comparative advantage in potato production because it can produce more potatoes per worker than Ireland (4 tonnes vs. 3 tonnes). Ireland has the absolute advantage in potato production because it can produce more potatoes per worker than Canada (3 tonnes vs. 2 tonnes).

Suppose Canada Could Produce 4 Tonnes of Potatoes or 2