Question

two countries produce copper and lead. country A can produce a maximum of 300 tons of copper per day or 150 tons of lead. Country b can produce a maximum of 400 tons of copper per day or 100 tons of lead. which statement best describes this situation

Answer 1

Answer:

A. Country B has a comparative advantage producing copper.

Multiple -choices

A. Country B has a comparative advantage producing copper.

B. Country A has an absolute advantage producing copper and lead.

C. Country A has an absolute advantage producing copper.

D. Country B has a comparative advantage producing lead.

Explanation:

A country has a comparative advantage over others if it can produce a product using fewer resources. It means that given equal inputs, a country with a comparative advantage will have more output than competitors. Therefore, comparative advantage is the ability to produce at a lower opportunity cost than rivals.

Country B's ability is 400 tons while country A capacity is 300 tons. Country B uses fewer resources hence has a higher output than country A.  Country B has a comparative advantage over country A.

Answer 2

Answer:

Country B has a comparative advantage producing copper.

Explanation: