Australia has an absolute advantage over South Africa in wool production if, during a year, Australia:

can produce more wool than South Africa.

specialises in wool production.

can produce less wool than South Africa

can produce more wool than South Africa with a given amount of resources

1 answer

Australia has an absolute advantage over South Africa in wool production if, during a year, Australia:

can produce more wool than South Africa with a given amount of resources.

This means that Australia is more efficient in wool production compared to South Africa, leading to a higher output using the same quantity of resources.

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