Answer:
A. Country B has a comparative advantage producing copper.
Multiple -choices
A. Country B has a comparative advantage producing copper.
B. Country A has an absolute advantage producing copper and lead.
C. Country A has an absolute advantage producing copper.
D. Country B has a comparative advantage producing lead.
Explanation:
A country has a comparative advantage over others if it can produce a product using fewer resources. It means that given equal inputs, a country with a comparative advantage will have more output than competitors. Therefore, comparative advantage is the ability to produce at a lower opportunity cost than rivals.
Country B's ability is 400 tons while country A capacity is 300 tons. Country B uses fewer resources hence has a higher output than country A. Country B has a comparative advantage over country A.
