Two Persons Each Produce Two Identical Goods

question 209

Multiple Choice

Two persons each produce two identical goods. Which of the following is true about their absolute and comparative advantages in the production of these two goods?

• A) One person can have an absolute advantage in both goods but not a comparative advantage in both goods.
• B) One person can have a comparative advantage in both goods but not an absolute advantage in both goods.
• C) One person can have neither an absolute nor a comparative advantage in either good.
• D) Both persons can always have both an absolute and comparative advantage in both goods.

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