When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods.

Question

Quizplus · Accepted Answer

Comparative advantage means that one person can produce a good at a lower opportunity cost than another. If one person has a comparative advantage in one good, the other person must have a comparative advantage in the other good, assuming only two goods are involved.

When There Are Two People and Each Is Capable of Producing