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Refer to the data available in Table 1. Assume both countries have equal quantities of resources. Assume they can each only produce cars and bananas. Table 1 shows the quantities of each product that each country could possibly produce using the resources available. Table 1: Production Possibilities for Country A and Country B [table] | Country A | Country B Maximum possible production of cars, assuming all resources are used for car production. | 1 million | 5 million Maximum possible production of bananas, assuming all resources are used for banana production. | 20 million | 35 million [/table] Which country has an absolute advantage in producing both products?

Options
A.a. Country A
B.b. Country B
C.c. Both
D.d. Neither
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To determine absolute advantage, compare how much of each good each country can produce with the same amount of resources. Option a: 'a. Country A' would claim Country A has an absolute advantage. This is incorrect because Country A’s m......Login to view full explanation

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