If a nation has an absolute advantage in the production of some commodity, it
A)can gain only if it has a comparative advantage in the commodity.
B)may still gain from trade in the commodity.
C)cannot gain from trade in the commodity.
D)cannot gain unless it has an absolute advantage in every other commodity.

Question

Quizplus · Accepted Answer

Even if a nation has an absolute advantage in the production of a commodity, it can still gain from trade in that commodity because it can produce it at a lower cost than other nations. This allows the nation to trade with other nations for goods and services it cannot produce as efficiently, resulting in mutual gains from trade.

If a Nation Has an Absolute Advantage in the Production