The following production possibilities schedule shows the quantities of soybeans and oil that can each be produced in Canada and Mexico with one unit of equivalent resources.
TABLE 32-3
-Refer to Table 32-3.Canada has an absolute advantage in the production of

Question

The following production possibilities schedule shows the quantities of soybeans and oil that can each be produced in Canada and Mexico with one unit of equivalent resources.
  TABLE 32-3
-Refer to Table 32-3.Canada has an absolute advantage in the production of

Quizplus · Accepted Answer

Canada has a lower opportunity cost of producing both soybeans and oil compared to Mexico. In other words, Canada can produce more of both goods using the same amount of resources. Therefore, Canada has an absolute advantage in the production of both soybeans and oil.

The Following Production Possibilities Schedule Shows the Quantities of Soybeans