If a country has the comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product.

Question

Quizplus · Accepted Answer

Comparative advantage means a country can produce a product at a lower opportunity cost than another country, while absolute advantage refers to the ability to produce more of a good using the same amount of resources. A country can have a comparative advantage without having an absolute advantage.

If a Country Has the Comparative Advantage in Producing a Product