In Latuna, it takes 10 resources to produce 1 ton of coffee and 13.5 resources to produce 1 ton of wheat. In South Narnia, it takes 40 resources to produce 1 ton of coffee and 12 resources to produce 1 ton of wheat. Latuna has absolute advantage over South Narnia in:_______.a. wheat.b. neither coffee nor wheat.c. both coffee and wheat.d. coffee.e. both coffee and wheat if combined.

Respuesta :

Answer:

coffee

Explanation:

A country has absolute advantage in production if it produces the same amount of goods using less resocurces or the country uses the same amount of resources to produce more quantity of goods when compared to other countries.

Latuna uses 10 resocurces to produce 1 ton of coffee while South Narnia uses 40 resocurces to produce 1 ton of coffee. Thus, latuna has absolute advantage in the production of coffee.

While South Narnia has absolute advantage in the production of wheat.

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