contestada

Country A can produce either 2 tons of cocoa or 4 cars with 10 units of labor a Country B can produce either 5 tons of cocoa or 25 cars with 10 units of labor, based on this information which of the following is true
A) Country A has an absolute advantage in the production of Cocoa, while Country B has a comparative advantage in the production of Cocoa
B) Country A has a comparative advantage in the production of Cocoa, while Country B has a comparative advantage in the production of cars
C) country A has an absolute advantage in the production of Cocoa. While country an has a comparative advantage in the production of cars

Respuesta :

Answer:

option B

Explanation:

The correct answer is option B

Country A can produce 2 ton of Cocoa or 4 cars with 10 unit labor.

Country B can produce 4 ton of cocoa or 25 cars in 10 units of labor.

so,  production of  Cocoa in company B has a comparative advantage.

While Cars production has a  comparative advantage in Company B.

Comparative advantage is the advantage between the given options like cocoa and cars.

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