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Who has absolute advantage in the production of oranges?For each acre of land assigned to orange production, Mary harvests 10 oranges per year, while Orson harvests 9 oranges per year. Thus, Mary has the absolute advantage in oranges.
Who has absolute advantage example?One real-world example of absolute advantage is in oil production. Nations in the Middle East have an absolute advantage when it comes to producing oil. In oil-rich nations, businesses can use simple, inexpensive techniques to drill for the resource and get it in large quantities.
How do you know who has the absolute advantage?To calculate absolute advantage, look at the larger of the numbers for each product. One worker in Canada can produce more lumber (40 tons versus 30 tons), so Canada has the absolute advantage in lumber. One worker in Venezuela can produce 60 barrels of oil compared to a worker in Canada who can produce only 20.
Which country has an absolute advantage in producing apples?and Korea can grow only 24 million apples using the same amount of labor, then the United States has an absolute advantage in apples. The United States has an absolute advantage in both goods since it can produce more apples and more cell phones using 1,000 workers.
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