In a situation where two goods can be produced by two different people,it is possible for one person to have a comparative advantage in the production of both goods and the other person to have the comparative advantage in the production of neither good.

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a person can produce a good at a lower opportunity cost than another. If one person has a comparative advantage in one good, the other must have it in the other good, as comparative advantage is relative.

In a Situation Where Two Goods Can Be Produced by Two