Question

Country a has a temperate climate and can grow bananas in the spring. it produces 42,000 pounds of bananas per year per growing acre. country b also has a temperate climate and can grow bananas in the summer. it produces 21,000 pounds of bananas per year per growing acre. two countries with similar resources want to grow bananas. which country has an absolute advantage for growing bananas? why does this country have an absolute advantage?

Answer 1

Country A would have absolute advantage because it produces the most pounds of bananas per year per growing acre.

What is Absolute advantage?

This is defined as the ability to produce more than available competitors in the market.

Country A produces more pounds of bananas per year per growing acre which is why it has an absolute advantage over country B.

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