Can a Country Have a Comparative Advantage in Producing a Good

question 87

Multiple Choice

Can a country have a comparative advantage in producing a good without also having an absolute advantage in producing that good?

• A) No, it can't because comparative advantage grows out of absolute advantage.
• B) No, it can't because they are different terms for the same concept.
• C) Yes, it can because comparative advantage is based upon being able to produce more and absolute advantage is not.
• D) Yes, it can because each type of advantage has a different basis.

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