Country A can produce 20 units of maize or 10 units of bananas. Country B can produce 30 units of maize or 20 units of bananas. Assuming constant opportunity costs, which of the following statements are correct? a. Country B has an absolute advantage in the production of maize. b. Country B has an absolute advantage in the production of bananas. c. Country A has a relative advantage in the production of bananas. [1] All the statements are correct. [2] a and b [3] a and c [4] b and c [5] c

Country A can produce 20 units of maize or 10 units of bananas. Country B can produce
30 units of maize or 20 units of bananas. Assuming constant opportunity costs, which of
the following statements are correct?
a. Country B has an absolute advantage in the production of maize.
b. Country B has an absolute advantage in the production of bananas.
c. Country A has a relative advantage in the production of bananas.
[1] All the statements are correct.
[2] a and b
[3] a and c
[4] b and c
[5] c

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