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

Question

Quizplus · Accepted Answer

Comparative advantage means being able to produce a good at a lower opportunity cost than another individual or country. This means that even if they do not have an absolute advantage in the production of the good, they can still have a comparative advantage. Therefore, they may or may not have an absolute advantage in the good's production.

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