Summary of production conditions in countries l and ll.

From the table, we can correctly say in respect of international trade that

  • A country I has absolute disadvantage in the production of both cocoa and cloth
  • B country I has absolute advantage in the prodcttion of both cocoa and cloth
  • C country ll has absolute advantage in the production of both cocoa and cloth
  • D country ll has a comparative advantage in the production of cocoa
  • E country ll should leave the production of both cocoa and cloth to country l.

The correct answer is B. country I has absolute advantage in the prodcttion of both cocoa and cloth

No explanation given
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