A country must have comparative advantage in a good in order to have absolute advantage in that good.

Question

Quizplus · Accepted Answer

Absolute advantage is the ability of a country to produce a good or service using fewer resources than another country, while comparative advantage is the ability of a country to produce a good or service at a lower opportunity cost than another country. Therefore, a country can have comparative advantage in a good without necessarily having absolute advantage in that good.

A Country Must Have Comparative Advantage in a Good in Order