An individual or country that has a comparative advantage in the production of one good:
A) may or may not have an absolute advantage in the good's production.
B) must not have an absolute advantage in the production of the other good.
C) must have an absolute advantage in the good's production.
D) must not have an absolute advantage in the good's production.

Question

Quizplus · Accepted Answer

Comparative advantage is based not on absolute productivity but on the opportunity cost of producing one good versus another. Therefore, it is possible for a country or individual to have a comparative advantage in the production of a good without having an absolute advantage in its production.

An Individual or Country That Has a Comparative Advantage in the Production