Question: Absolute Advantage table [ [ , table [ [ Hours needed to make 1 ] , [ pound of: ] ] ,
Absolute Advantage
tabletableHours needed to make pound of:tableAmount produced in hours hrs:Meat,Potatoes,Meat,PotatoesFarmer hrs hrslb lbs lbsRancher hourlbhrslb lbs lbs
The Rancher needs only hours to produce a pound of potatoes, whereas the Farmer needs hours.
The Rancher needs only hour to produce one pound of meat, whereas the Farmer needs hours.
Even if the Rancher has an absolute advantage in the production of both meat and potatoes, it is still beneficial for him to trade. Why?
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