Answer to Question #251605 in Microeconomics for noxolo

Question

Suppose that Swaziland can produce either 18 tons of oranges or 9 tons of apples in a year, while Namibia can produce either 16 tons of oranges or 4 tons of apples in a year. Which of the following statements is true based on the information given above?

Answer 1

Since Swaziland has an absolute advantage in the production of both goods, no mutual gains from trade are possible.