Question

URGENTTTtt !!!!!

If Country A uses all of the resources at its disposal, it can produce a maximum of 500 watches or 200 televisions. Within the same time frame, if Country B uses all of its resources, it can produce a maximum of 200 watches or 100 televisions. Which of the following must be true? (1 point)

O Country A has the absolute advantage and the comparative advantage in watch production.

O Country B has the absolute advantage and the comparative advantage in watch production.

Country A has the absolute advantage in watch production, but Country B has the comparative advantage in watch production.


O Country B has the absolute advantage in watch production, but Country A has the comparative advantage in watch production.

Answer 1

The true statement is A. Country A has the absolute advantage and the comparative advantage in watch production.

Country A's absolute advantage is its ability to produce more watches than Country B since it can produce 500 watches and even 200 televisions using similar resources that Country B has.  In addition, Country A has a comparative advantage over Country B since it can produce 500 more watches than Country at a lower cost.

Thus, Country A enjoys both absolute and comparative advantages over Country B in the production of watches.

Learn more: https://brainly.com/question/14044496