Question

Alpha Colony and Beta Colony both manufacture textiles and technology. Alpha Colony always produces higher quality textiles and technology with fewer raw materials and in less time than Beta Colony. Which statement would explain the reason why Alpha Colony has an advantage over Beta Colony?
A. Alpha Colony has a comparative advantage because it chooses not to export its manufactured goods to other colonies.

B. Alpha Colony has a comparative advantage because it chooses to ignore the opportunity cost of using more raw materials.

C. Alpha Colony has an absolute advantage because it has an established manufacturing infrastructure and trained workers.

D. Alpha Colony has an absolute advantage because it has more farms and mines to produce raw materials needed for its products.

Answer 1

The statement that would explain why Alpha colony has an advantage over Beta colony is :
D. alpha colony has an absolute advantage because it has an established manufacturing infrastructure and trained workers

Trained workers : Increase product's quality, and established manufacturing infrastructure increase manufacturing efficiency

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