Question

Alpha Colony and Beta Colony both manufacture textiles and technology. Alpha Colony always produces higher quality textiles and technology with fewer raw materials and in less time than Beta Colony. Which statement would explain the reason why Alpha Colony has an advantage over Beta Colony?

Answer 1

Answer: Alpha Colony has an absolute advantage because it has better production methods and more productive workers.

Explanation:

According to International trade theory, the fact that the Alpha Colony has an absolute advantage over Beta Colony doesn't mean that trade can't exist between.