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pentagon [3]
3 years ago
10

A nation has an absolute advantage in the production of a good, if Group of answer choices it can produce that good at a lower o

pportunity cost than its trading partner it can produce that good using fewer resources than its trading partner it can produce that good using more resources than its trading partner it can produce that good at a higher opportunity cost than its trading partner PreviousNext
Business
1 answer:
Leona [35]3 years ago
6 0

Answer: it can produce that good using fewer resources than its trading partner

Explanation:

A country has an absolute advantage in the production of a good when such country can produce the good using fewer resources than another country.

Absolute advantage can be due to the natural endowment of a country. For example, let's say Japan uses 2 hours in producing a good while Brazil uses 5 hours in producing such good. Then, it can be deduced that Japan has an absolute advantage over Brazil.

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