If a country produces only two goods, it is possible to have a comparative advantage in the production of both of those goods.

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, a country cannot have a comparative advantage in both goods. The country should specialize in producing the good that it has a lower opportunity cost of producing, and import the other good from a country that has a lower opportunity cost in producing it.

If a Country Produces Only Two Goods, It Is Possible