Assume France and Mali can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries.

Each farmer in France can produce 10 metric tons of grain or 5 metric tons of dates in a season. Each farmer in Mali can also produce 10 metric tons of grain or 25 metric tons of dates. Please answer the four questions below.

1. Which country has the absolute advantage in producing dates?

2. Which country has the absolute advantage in producing grain?

3. Which country has the competitive advantage in producing dates?

4. Which country has the comparative advantage in producing grain?

Answer rating: 100% (QA)

1 Absolute Advantage in Producing Dates Mali has the absolute advantage in producing dates since eac... View the full answer