If Canada has a comparative advantage over Mexico in the production of shoes, it must also have an absolute advantage over Mexico in the production of shoes.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce goods at a lower opportunity cost than another, while absolute advantage means being able to produce more of a good with the same amount of resources. A country can have a comparative advantage without having an absolute advantage.

If Canada Has a Comparative Advantage Over Mexico in the Production