If the U.S.enjoys an absolute advantage in agriculture compared to every other country in the world,then
A)agricultural production will take place only in the U.S.
B)the U.S.necessarily has a comparative advantage in agriculture.
C)the U.S.may or may not have a comparative advantage in agriculture.
D)the U.S.necessarily does not have a comparative advantage in agriculture.

Question

Quizplus · Accepted Answer

Having an absolute advantage in agriculture means the U.S. can produce agricultural goods more efficiently than any other country. However, comparative advantage considers the opportunity cost of producing goods. The U.S. may have a higher opportunity cost in agriculture compared to another sector, meaning it could still benefit from trade by specializing in goods for which it has the lowest opportunity cost, even if it's not agriculture.

If the USEnjoys an Absolute Advantage in Agriculture Compared to Every Other