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Country A specializes in producing kiwis. Country B specializes in producing oranges. As a result, Country A can consume more kiwis and oranges than it could have if it had tried to grow kiwis oranges itself and had decided not to trade. This illustrates the concept of: Group of answer choices Supply

Respuesta :

This scenario better illustrates the concept of absolute advantage, as both countries are specialized in one product.

What is the absolute advantage?

  • It is an economic perspective that explains how a nation's specialization in the manufacture and selling of a thing or service aids in economic growth since trade between nations with various specialties can result in money coming from the export of commodities.

What is absolute advantage and examples?

  • Absolute advantage occurs when one country produces a good more effectively than another.
  • In other words, a finished commodity or service can be produced with fewer resources.
  • Brazil, for instance, has a clear edge when producing coffee beans.

What is absolute advantage and why is this important?

  • This approach aids nations in avoiding the manufacture of goods that might result in losses due to low or nonexistent demand.
  • A nation's absolute competitive advantage or disadvantage in a certain industry can have a significant impact on the products it chooses to manufacture.

Learn more about Absolute Advantage here:

https://brainly.com/question/8141905

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