A person who has an absolute advantage in the production of all goods will
A)have a comparative advantage in the production of only some goods and not others.
B)produce all goods at the lowest opportunity cost.
C)also have a comparative advantage in the production of all goods.
D)not be able to gain from specialization and trade.
E)not have a comparative advantage in the production of any goods.

Question

Quizplus · Accepted Answer

Having an absolute advantage in all goods means a person can produce more of every good compared to others with the same resources. However, comparative advantage is about who has the lower opportunity cost in producing a good. A person with an absolute advantage in all goods can still have a comparative advantage in only some goods, as it depends on the opportunity costs of producing those goods relative to others.

A Person Who Has an Absolute Advantage in the Production