The following table describes the production possibilities of two cities in the country of Baseballia:   Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston 3 6 Chicago 5 4   Without trade, the price of a pair of white socks (in terms of red socks) in Boston is    of red socks, and in Chicago it is    of red socks.       has an absolute advantage in the production of red socks, and    has an absolute advantage in the production of white socks.       has a comparative advantage in the production of red socks, and    has a comparative advantage in the production of white socks.   If the cities trade with each other, Boston will export    socks, and Chicago will export    socks.   The price of white socks can be expressed in terms of red socks. The highest price at which white socks can be traded that would make both cities better off is    of red socks per pair of white socks, and the lowest price that makes both cities better off is    of red socks per pair of white socks.

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Comparative Advantage and Absolute Advantage Analysis

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