If a country has an absolute advantage in producing a product,it may not have a comparative advantage in producing that product.

Question

Quizplus · Accepted Answer

While having an absolute advantage means a country can produce a product more efficiently than another country, comparative advantage takes into account the opportunity cost of producing a product. A country may have an absolute advantage in producing a product but may have a comparative disadvantage because it would have to give up producing a product it can produce more efficiently in order to produce the product in question.

If a Country Has an Absolute Advantage in Producing a Product,it