Which country has absolute advantage in producing potatoes?
A)Russia
B)Byelorussia
C)Both countries
D)Neither country

Question

Quizplus · Accepted Answer

To determine which country has an absolute advantage in producing potatoes, we need to compare the production efficiency of both countries. If one country can produce more potatoes with the same amount of resources (land, labor, capital) than the other, then it has an absolute advantage in potato production. Without any information on the production efficiency of both countries, we cannot say that both countries or neither country has an advantage. However, if we assume that both countries have the same resources and technology, and Russia can produce more potatoes than Byelorussia, then Russia has an absolute advantage in potato production.

Which Country Has Absolute Advantage in Producing Potatoes