Question

According to the two production possibility curves of country A and country B shown below, who has the absolute advantage in the production of corn? Country B. We can not know from the provided information. Country A. Country A and Country B.

Answer 1

Without seeing the provided PPCs for countries A and B, we cannot determine which country has the absolute advantage in corn production. Absolute advantage is demonstrated by the ability to produce a larger quantity of goods when all resources are entirely devoted to its production.

Step-by-step explanation:

To determine which country has the absolute advantage in the production of corn, you would need to look at the production possibility curves (PPCs or PPFs) for each country. The country with the absolute advantage is the one that can produce a larger amount of corn when all resources are devoted to its production. Without access to the specific PPFs provided, we cannot give a definite answer.

However, in a hypothetical example where Brazil and the U.S. are compared, Brazil has an absolute advantage in sugar cane and the U.S. in wheat. This can be seen when observing the extreme production points: Brazil produces more sugar cane and the U.S. produces more wheat, showing absolute advantages in their respective products.