Which of the following is correct with respect to absolute and comparative advantage?
A) Brazilian coffee beans are a good example of comparative advantage.
B) Absolute advantage exists when a country can produce something more cheaply and/or of higher quality than the next three most efficient countries.
C) A country has a comparative advantage when it can produce a product more efficiently or better than most (but not all) other countries.
D) All countries have a comparative advantage in some products.
E) All of these are correct.

Question

Quizplus · Accepted Answer

Comparative advantage exists when a country can produce a good at a lower opportunity cost than others, meaning all countries have a comparative advantage in some products.

Which of the Following Is Correct with Respect to Absolute