country has an absolute advantage over another in the production of widgets if it can produce Select one: a. widgets using smaller quantities of resources than can the other country. b. more widgets than can the other country. c. widgets more efficiently than can the other country. d. widgets at a lower opportunity cost than can the other country.

Question

Business

Danica Fritz

7 April, 03:52

country has an absolute advantage over another in the production of widgets if it can produce Select one: a. widgets using smaller quantities of resources than can the other country. b. more widgets than can the other country. c. widgets more efficiently than can the other country. d. widgets at a lower opportunity cost than can the other country.

+4

Answers (1)

Know the Answer?

Isai Howe · Answer 1

Option (a) is correct.

Explanation:

A country has an absolute advantage in producing a commodity if it uses the fewer amount of resources in the production of a commodity as compared to the other country.

Suppose there are two countries:

Country A uses 10 labor hours to produce 5 widgets and on the other hand Country B uses 15 labor hours to produce 5 widgets.

In this case, a country A has a absolute advantage in producing widgets because it uses less labor hours to produce same quantity of widgets than country B.