This table shows the cost of producing ice cream for several manufacturers.Manufacturer Amount Produced CostThe Dairy 100 gallons $10 Ice Cream, Inc. 100 gallons $15 Frozen Treats 150 gallons $12 Bob & Gary’s 125 gallons $15 Which manufacturer has the absolute advantage?

Compare the cost per gallon for each manufacturer. Frozen Treats spends $12 to produce 150 gallons, or $0.08 per gallon, the lowest cost per gallon in the table. It therefore has the absolute advantage in producing ice cream.

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