In southern California,there are banana plantations.These plantations cannot produce all the bananas consumed by persons in the U.S.The fact that the U.S.grows and sells bananas gives it a comparative advantage in bananas.It is not an absolute advantage and that is why we choose to import bananas from other countries,as well.
The U.S.does not have a comparable advantage or an absolute advantage in bananas.We cannot produce bananas as efficiently as other nations (Comparative advantage)and we are not the only nation in the world that produces bananas (Absolute advantage).

Question

Quizplus · Accepted Answer

The U.S. does not have a comparative advantage in bananas because it cannot produce them as efficiently as other nations. Comparative advantage refers to the ability to produce a good at a lower opportunity cost, not just the ability to produce it. The statement incorrectly defines comparative advantage.

In Southern California,there Are Banana Plantations