Is it possible for a country to have an absolute disadvantage and a comparative advantage in the production of a good?
A)No,these are incompatible on theoretical grounds.
B)No,theory prevents it,but some economists claim it could occur.
C)Yes,this situation can occur.
D)Yes,in theory,although not in reality.

Question

Quizplus · Accepted Answer

It is possible for a country to have an absolute disadvantage in the production of a good, meaning it cannot produce the good as efficiently as another country. However, it can still have a comparative advantage in the production of that same good, meaning it has a lower opportunity cost in producing the good in comparison to other goods it could produce. This is because comparative advantage is based on relative opportunity costs, while absolute advantage is based on absolute productivity levels.

Is It Possible for a Country to Have an Absolute