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Is It Possible for a Firm to Have a Comparative

question 35

Essay

Is it possible for a firm to have a comparative advantage in producing something without having an absolute advantage? Why or why not?


Definitions:

Substitute Goods

Products or services that can be used in place of each other by consumers.

Price of Oil

The amount of money required to purchase a barrel of oil, influenced by global supply and demand, geopolitical events, and other factors.

Natural Gas

Natural gas is a fossil fuel consisting mainly of methane and other hydrocarbons, used as a source of energy for heating, cooking, and electricity generation.

Demand Curve

A visual chart that depicts the correlation between a product's price and the amount consumers are willing to buy.

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