If Argentina is capable of producing up to 200 airplanes or 500 shirts in a year, and Brazil could produce 1000 airplanes or 800 shirts in a year, who has the absolute advantage in producing shirts?

Question

Mathematics

Blaze Serrano

18 May, 05:25

If Argentina is capable of producing up to 200 airplanes or 500 shirts in a year, and Brazil could produce 1000 airplanes or 800 shirts in a year, who has the absolute advantage in producing shirts?

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Answers (1)

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Leland Cortez · Answer 1

Argentina has the absolute advantage in producing shirts.

Step-by-step explanation:

Absolute advantage of a country is defined by the efficiency of the country to produce the particular product.

In the given question absolute advantage of Brazil is producing airplanes (1000 airplanes) then producing shirts (800 shirts).

While Argentina's absolute advantage is in producing shirts (500 shirts) than airplanes (200 airplanes)

Therefore, Argentina has the absolute advantage over Brazil in producing shirts.