If a country produces only two goods,then it is not possible to have a comparative advantage in the production of both those goods.

Question

Quizplus · Accepted Answer

Comparative advantage requires a country to specialize in producing the goods in which it has lower opportunity cost. If a country produces only two goods, it cannot have a lower opportunity cost for both of them, thus it cannot have a comparative advantage in producing both goods.

If a Country Produces Only Two Goods,then It Is Not