Country A can produce 50 tons of rice or 100 tons of fish, while Country B can produce 30 tons of rice or 90 tons of fish. Which country has an absolute advantage in the production of fish, and how does this affect their trade decisions?

To find out which country has an absolute advantage in producing fish, we look at how much fish each country can produce. Country A can produce 100 tons of fish, while Country B can produce 90 tons of fish. Since Country A can produce more fish than Country B, it has the absolute advantage in fish production. This means that Country A can produce fish more efficiently. Because of this advantage, Country A might focus on producing fish and trade some of it with Country B for rice, allowing both countries to benefit from their strengths.