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If nation A can produce 20 units of good X and 16 of good Y while...

If nation A can produce 20 units of good X and 16 of good Y while nation B can produce 18 units of X and 12 of Y, A has an absolute advantage in producing both X and Y.

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Assuming the same amount of input resources, nation A can produce higher amount of both X and Y as compared to what Country B can produce. It indicates that country A has an absolute advantage in producing X and Y.

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