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Gre4nikov [31]
3 years ago
13

If country ABC can produce a unit of good 1 by sacrificing fewer units of good 2 than can country XYZ, it is correct to say that

country ABC A. has an absolute advantage in producing good 1. B. will not wish to trade good 1 with country XYZ. C. will import good 1. D. has a comparative advantage in producing good 1.
Business
1 answer:
Zinaida [17]3 years ago
4 0

Answer:

has a comparative advantage in producing good 1

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries. Country abc has a comparative advantage because it sacrifices fewer quantities of good 2.

Country abc should specialise in production of good 1, while country xyz should import from country abc.

A country has an absolute advantage in the production of a good or service If it produces more quantity of the good compared with other countries.

I hope my answer helps you

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