If a country has a comparative advantage in producing a product, it may or may not have an absolute advantage in producing that product.

Question

Quizplus · Accepted Answer

A country may have a lower opportunity cost of producing a certain product compared to other countries, giving it a comparative advantage in producing that product. However, it may not necessarily have the highest level of efficiency or productivity in producing that product, which is what determines absolute advantage.

If a Country Has a Comparative Advantage in Producing a Product