It is possible to have an absolute advantage in producing a good or service without having a comparative advantage.

Question

Quizplus · Accepted Answer

Absolute advantage is the ability of a country or firm to produce a certain good or service at a lower cost or with higher efficiency than other countries or firms, while comparative advantage is the ability to produce a good or service at a lower opportunity cost than other countries or firms. It is possible for a country or firm to have an absolute advantage in producing a good or service but not a comparative advantage if another country or firm can produce that good or service at a lower opportunity cost.

It Is Possible to Have an Absolute Advantage in Producing