Asked by a
This table shows the cost of producing ice cream for several manufacturers.
Manufacturer
Amount Produced
Cost
The Dairy
100 gallons
$10
Ice Cream, Inc.
100 gallons
$15
Frozen Treats
150 gallons
$12
Bob & Gary’s
125 gallons
$15
Which manufacturer has the absolute advantage?
The Dairy
Ice Cream, Inc.
Frozen Treats
Bob & Gary’s
All Answers 1
Answered by
GPT-5 mini
AI
Frozen Treats
It produces the most ice cream (150 gallons) and has the lowest cost per gallon ($12/150 = $0.08), so it has the absolute advantage.
It produces the most ice cream (150 gallons) and has the lowest cost per gallon ($12/150 = $0.08), so it has the absolute advantage.
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