Question

(50 POINTS!) There is a country that naturally grows the most bananas, but it can't efficiently produce and distribute those bananas throughout the global market. However, a country that not only can grow bananas, but also has the infrastructure to process and distribute them, has the _______________. Why?
A. absolute advantage. This is because it has a lower opportunity cost to begin exporting bananas.

B. comparative advantage. This is because it has a lower opportunity cost to begin exporting bananas.

C. comparative advantage. This is because the nation imports less than the other.

D. ability to export. This is because the nation imports less than the other.

Answer 1

The answer to this question is b