ECS3702
Assignment 2 Semester 2 2024
Detailed Solutions, References & Explanations
Unique number:
Due Date: 6 September 2024
QUESTION 1A
(i) Absolute Advantage
Definition: A country has an absolute advantage when it can produce more of a good with the
same amount of resources compared to another country.
• Unos has an absolute advantage in cellphone production because it produces more
cellphones (18 tons/hr) compared to Tres (6 tons/hr).
• Tres has an absolute advantage in candle production because it produces more candles
(8 tons/hr) compared to Unos (6 tons/hr).
Therefore, Unos has an absolute disadvantage in candle production, and Tres has an absolute
disadvantage in cellphone production.
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