Answer:
1. Option (A) is correct.
2. Option (C) is correct.
3. Option (A) is correct.
4. Option (B) is correct.
Explanation:
1. Mali has an absolute advantage in producing dates because it produces more number of dates than France with the same level of resources.
25 metric ton > 5 metric ton
2. No country has an absolute advantage in producing grain because both the countries are producing same amount of grain with the same level of resources.
10 metric tons of grain each
3.
Opportunity cost of producing a date in France = 10 ÷ 5
= 2 tons of grain
Opportunity cost of dates in Mali = 10 ÷ 25
= 0.4 tons of grain
Therefore,
Mali has a comparative advantage in producing dates because it has the lower opportunity cost of producing dates than France.
4. Opportunity cost of producing a ton of grain in France = 5 ÷ 10
= 0.5 dates
Opportunity cost of producing a ton of grain in Mali = 25 ÷ 10
= 2.5 dates
Therefore,
France has a comparative advantage in producing grain because it has the lower opportunity cost of producing grain than Mali.
