Suppose Julian has the absolute advantage in producing two goods.Which statement best describes possible specialization?

Question

Quizplus · Accepted Answer

Just because Julian has an absolute advantage in both goods does not necessarily mean he has a comparative advantage in both. It is possible for Julian to have a lower opportunity cost in producing one good over the other, thus he should specialize in the production of that good where he has a comparative advantage. Specializing in both goods would not be efficient as it would not take advantage of his absolute advantage in one of the goods.

Suppose Julian Has the Absolute Advantage in Producing Two Goods