Which of the following is not correct?
A) The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.
B) The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X.
C) The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing that good.
D) The gains from specialization and trade are based not on comparative advantage but on absolute advantage.
Correct Answer:
Verified
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