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Principles of Macroeconomics/Basic Economic Concepts
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Labor Hours and Absolute Advantage

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The accompanying table shows the labor hours required to produce one unit of two goods, salmon and coconut creme pies, in two countries. Assuming labor is the only input, which of the following statements is true?

A

Country C has an absolute advantage in the production of one good, but not both.

B

Country C has an absolute advantage in the production of both goods.

C

Neither country has an absolute advantage in the production of these two goods.

D

Country D has an absolute advantage in the production of one good, but not both.

E

Country D has an absolute advantage in the production of both goods.

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