A person who has an absolute advantage in the production of all goods will
A) not be able to gain from specialization and exchange.
B) have a comparative advantage only in the production of some goods but not for others.
C) have a production possibilities frontier with a constant slope.
D) also have a comparative advantage in the production of all goods.

Question

Quizplus · Accepted Answer

A person with an absolute advantage in all goods can still benefit from specialization and exchange because comparative advantage, which is based on opportunity costs, allows them to produce some goods more efficiently relative to others.

A Person Who Has an Absolute Advantage in the Production