Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1
-Refer to Table 18.1. Guatemala has
A) a comparative advantage but not an absolute advantage in orange production.
B) a comparative advantage but not an absolute advantage in banana production.
C) an absolute advantage and a comparative advantage in banana production.
D) an absolute advantage and a comparative advantage in orange production.

Question

Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1 
-Refer to Table 18.1. Guatemala has
A) a comparative advantage but not an absolute advantage in orange production. 
B) a comparative advantage but not an absolute advantage in banana production. 
C) an absolute advantage and a comparative advantage in banana production. 
D) an absolute advantage and a comparative advantage in orange production.

Quizplus · Accepted Answer

Guatemala has a comparative advantage in banana production if it can produce bananas at a lower opportunity cost than other countries, even if it doesn't have the absolute advantage, which means producing more with the same resources.

Refer to the Information Provided in Table 18