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

Question

Quizplus · Accepted Answer

Having a comparative advantage means that a country can produce a good at a lower opportunity cost than another country, even if it does not have an absolute advantage in producing that good. Absolute advantage refers to a country's ability to produce a good more efficiently than another country, regardless of other factors.

If a Country Has a Comparative Advantage in Producing a Product