If the U.S.can produce wheat at $2 a bushel and corn at $3 bushel,while Canada can produce wheat at $3 a bushel and corn at $4 a bushel,then
A)the U.S.has an absolute advantage at producing both corn and wheat.
B)Canada has an absolute advantage at producing both corn and wheat.
C)the U.S.has an absolute advantage at producing corn,but not wheat.
D)the U.S.has an absolute advantage at producing wheat,but not corn.

Question

Quizplus · Accepted Answer

The U.S. can produce both wheat and corn at lower costs ($2 and $3 respectively) compared to Canada's costs ($3 and $4 respectively), indicating the U.S. has an absolute advantage in producing both commodities.

If the UScan Produce Wheat at $2 a Bushel and Corn at Corn