If everyone had the same opportunity cost of producing a particular good,then
A) everyone would have the same absolute advantage.
B) no one would have an absolute advantage.
C) everyone would have the same comparative advantage.
D) the absolute advantage would be the same for everyone but the comparative advantage would vary.
E) the absolute and comparative advantage would be the same for everyonE.

Question

Quizplus · Accepted Answer

If everyone has the same opportunity cost of producing a particular good, then everyone has the same relative efficiency of producing that good. Therefore, everyone would have the same comparative advantage in producing that good. Absolute advantage, on the other hand, is determined by who can produce the most output with a given amount of resources, so it would not necessarily be the same for everyone.

If Everyone Had the Same Opportunity Cost of Producing a Particular