The United States has an absolute advantage in producing T-shirts,but not a comparative advantage,because

Question

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Comparative advantage refers to the ability to produce a good or service at a lower opportunity cost than another country. Even though the United States has an absolute advantage in producing T-shirts (meaning it can produce the good more efficiently than another country), it may not have a comparative advantage if another country, such as China, can produce T-shirts at a lower opportunity cost (meaning they can produce T-shirts while giving up fewer resources compared to the United States). Therefore, option C is the correct choice. Option A is incorrect because it focuses on absolute advantage, not comparative advantage. Option B is also incorrect because it suggests that the United States has a comparative advantage because it uses fewer resources to produce T-shirts, but this is not necessarily true as another country could still have a lower opportunity cost in producing T-shirts.

The United States Has an Absolute Advantage in Producing T-Shirts,but