Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.The rancher has an absolute advantage in the production of
A) meat.
B) potatoes.
C) both goods.
D) neither good.

Question

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.
 
-Refer to Table 3-4.The rancher has an absolute advantage in the production of
A) meat. 
B) potatoes. 
C) both goods. 
D) neither good.

Quizplus · Accepted Answer

The rancher can produce more meat than the farmer (10 units vs. 5 units) and the same amount of potatoes (5 units each), indicating an absolute advantage in the production of meat. Therefore, the best choice is A.

Table 3-4 Assume That the Farmer and the Rancher Can Switch Between