He united states can produce 200 pillows in one week, while spain and france produce 150 and 100 pillows, respectively, in one week. on the other hand, spain can produce 10 televisions in one week, while the united states and france produce only 5 and 4 televisions, respectively. has an absolute advantage in producing pillows, and has an absolute advantage in producing televisions.
In the illustration given ...
THE UNITED STATES has an absolute advantage in producing pillows, and
SPAIN has an absolute advantage in producing televisions.
Absolute advantage refers to one person (or one nation) having a consistent advantage over another in making a particular product efficiently and best.
The production of a good or performance of a skill for which a person is best suited is termed comparative advantage. Or, on a national level, the production of goods for which a nation's resources are best suited is comparative advantage.
Incidentally, the USA no longer has absolute or comparative advantage in the production of televisions. In the 1950s, at the dawn of the television era, there were over 100 television manufacturers in the US, producing about 11 million TV sets each year. But today, according to Politifact, "evidence suggests about 99 percent of sets sold in the United States are fully made and assembled overseas, mainly in Asia."
The correct answers is:
The United States has an absolute advantage in producing pillows, and Spain has an absolute advantage in producing televisions
Absolute advantage is a term of economics which can be defined as an ability of a person, company or country to produce a greater quantity of goods as compared to his competetors.
We can surely understand that in the pillows market, the United States has an absolute advantage as it is producing about 50 pillows more than Spain and 100 pillows more than France in one week.
Similarly, in the televisions market, Spain has the absolute advantage because Spain is producing 5 more televisions than United States and 6 more televisions than France in one week