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

Answer:

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

Explanation:

Absolute advantage is when a country produces more efficiently than its trading partners.

Comparative advantage is when a country has a lower opportunity cost in production when compared with its trading partners.

Alpha Colony always produces higher quality textiles and technology with fewer raw materials and in less time than Beta Colony. Therefore, alpha colony has an absolute advantage because it produces more efficiently than beta colony.

Established manufacturing infrastructure and trained worker explain the absolute advantage because these factors ensures efficient use of materials and lessens production time.

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