Compare the following answers and select the one which is correct when it comes to comparative and absolute advantage. It is possible for a country to produce every good and have an absolute advantage in every good. It is not possible for a country who has an absolute advantage to benefit from trading with a smaller country. Countries should specialize in producing goods that they have an absolute advantage in producing. A country producing products at a lower opportunity cost than other nations has comparative advantage with those products.
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It is not possible for a country to produce every good and have an absolute advantage in every good. Absolute advantage refers to a country's ability to produce a good more efficiently than another country. It is unlikely for a country to have an absolute Show more…
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