WAEC - Economics (2023 - No. 23)
Country M enjoys absolute advantage over country N in the production of commodities X and Y, if country M
is inefficient in the production of both commodities X and Y
is more efficient than country N in producing both commodities X and Y
can produce only commodity Y cheaper than country N
and country N are efficient in the production of both goods
คำอธิบาย
Country M enjoys absolute advantage over country N in the production of commodities X and Y if country M is more efficient than country N in producing both commodities X and Y.
Absolute advantage refers to the ability of a country to produce a good or service using fewer resources than another country. In this case, country M is able to produce both commodities X and Y using fewer resources than country N. This means that country M can produce more of both commodities with the same amount of resources, or it can produce the same amount of both commodities with fewer resources.
Absolute advantage refers to the ability of a country to produce a good or service using fewer resources than another country. In this case, country M is able to produce both commodities X and Y using fewer resources than country N. This means that country M can produce more of both commodities with the same amount of resources, or it can produce the same amount of both commodities with fewer resources.