For two individuals who engage in the same two productive activities,it is impossible for one of the two individuals to
A)have a comparative advantage in both activities.
B)have an absolute advantage in both activities.
C)be more productive per unit of time in both activities.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, individuals should specialize in the activity in which they have a lower opportunity cost, meaning they give up less of one good to produce another. Therefore, if two individuals engage in the same two productive activities, one of them should be relatively more efficient in one activity compared to the other. Hence, it is impossible for one individual to have a comparative advantage in both activities. However, it is possible for one individual to have an absolute advantage in both activities or be more productive per unit of time in both activities.

For Two Individuals Who Engage in the Same Two Productive