If a country has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.

Question

Quizplus · Accepted Answer

Having an absolute advantage means a country can produce more of a good using the same amount of resources as another country, but comparative advantage involves producing a good at a lower opportunity cost. A country can have an absolute advantage in producing a product but might still have a higher opportunity cost in its production, meaning it does not have a comparative advantage.

If a Country Has an Absolute Advantage in the Production