.1.1 Kenya has a comparative advantage over Uganda in the production of sugar if it: choose correct answer (1) Is able to produce sugar at a faster rate than Uganda. (2) Produces sugar at a lower opportunity cost than Uganda. (3) Has the absolute advantage in sugar production. (4) Specialises in sugar production.

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.