If everyone had the same opportunity cost of producing a particular good,then
A) everyone would have the same absolute advantage.
B) no one would have an absolute advantage.
C) everyone would have the same comparative advantage.
D) the absolute advantage would be the same for everyone but the comparative advantage would vary.
E) the absolute and comparative advantage would be the same for everyone.

Question

Quizplus · Accepted Answer

Opportunity cost is the basis of comparative advantage. If everyone has the same opportunity cost for producing a particular good, it means that they all give up the same amount of one good to produce another. Therefore, everyone would have the same comparative advantage in producing this good. This does not necessarily mean that everyone would have the same absolute advantage, as the absolute advantage depends on the total output that can be produced with the available resources.

If Everyone Had the Same Opportunity Cost of Producing a Particular