For Country X to have an absolute advantage over Country Y in the production of automobiles, it would need to be able to produce cars more efficiently or at a lower cost compared to Country Y. Therefore, the relevant condition from the options provided is:
Country X can manufacture cars more cheaply.
This means that Country X can produce more automobiles with the same resources, or it can produce an equivalent number of automobiles at a lower overall cost, thus establishing its absolute advantage in automobile production.
The other options—such as higher wages for workers in Country X, Country Y subsidizing its industry, or Country Y having a protective tariff—do not directly pertain to the concept of absolute advantage. In fact, higher wages can often indicate higher production costs, and subsidies and tariffs could affect competitiveness but are not determinants of absolute advantage in terms of production efficiency or cost.
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