Use the graph to answer the following question: Plant R and Plant S both produce radios and calculators. Which of the following statements is most true?  A) Plant R has the comparative advantage to produce radios but not calculators.  B) Plant R has the comparative advantage to produce both goods.  C) Plant S has the comparative advantage to produce radios but not calculators.  D) Plant S has the absolute advantage to produce both calculators and radios.

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Comparative Advantage and Absolute Advantage Analysis

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