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Country A would have an absolute advantage over Country B in the

production of computers under what circumstance?

User DxCK
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2 Answers

2 votes

Answer:

Companies in Country A can produce computers at a lower cost.

Step-by-step explanation:

k12 ^_^

User Kapandron
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6 votes

Answer:

If country A is able to produce the same units of computers at a lower cost than country B under similar production conditions.

Step-by-step explanation:

If under similar conditions of input and production process, country A is able to produce more units of computer than country B, then A is said to have an absolute advantage over B.

By definition, absolute advantage is the capacity of an establishment, person, country, or organization to produce a higher output with similar input and production process when compared to another establishment, person, country, or organization.

In other words, an entity will have an absolute advantage over another if the former is more efficient in its production.

User Real Dreams
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