The Kingdom of Mocha enjoys no absolute advantage in crude oil, diamonds, or wool. However, the Mochans manufacture high-quality bows and arrows. Which statement about the Mochans is true?

The Mochans have a comparative advantage in the production of bows and arrows.

Explanation:

Comparative advantage is defined as the ability of a country to produce a product at a lower cost compared to other countries.

In such a situation it will be cheaper for other countries to buy the products than to produce it themselves.

In this scenario the Mochans manufacture high-quality bows and arrows, so they have comparative advantage in producing these goods.

However they have no absolute advantage in crude oil, diamonds, or wool. So they do not have comparative advantage in producing these products and will be better off buying them from other countries that produce them at a cheap rate

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