Ecuador has a comparative advantage in the production of bananas over the united states. which of the following statements is true?

the united states cannot produce bananas.

the united states has an absolute advantage in the production of bananas.

ecuador also has an absolute advantage in the production of bananas.

ecuador can produce bananas at a lower opportunity cost than the united states.

The correct answer is: "Ecuador can produce bananas at a lower opportunity cost than the United States".

Countries or companies specialize on producing goods or services where they have acquired a competitive advantage.

A comparative advantage is defined as the superiority that a producer enjoys and which enables him to manufacture a certain product at a lower cost, or with a higher quality, if compared to its competitors. Therefore, this country becomes the most efficient producer which is able to elaborate the product with the lowest opportunity cost, an  is able to attract a larger share of the demand.

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