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19 May, 11:02

If a country has an absolute advantage in producing a good, it definitely also has a comparative advantage in producing that good. an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good. a comparative advantage in production of a good, it must also have an absolute advantage in producing that good. an absolute advantage in producing a good, it definitely will not have a comparative advantage in producing that good. None of these answers is correct.

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  1. 19 May, 12:40
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    Correct option:

    an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good

    Explanation:

    If a country has

    an absolute advantage in producing a good, it definitely also has a comparative advantage in producing that good. an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good a comparative advantage in production of a good, it must also have an absolute advantage in producing that good. an absolute advantage in producing a good, it definitely will not have a comparative advantage in producing that good. None of these answers is correct.

    the absolute advantage refer to the quantity of output of a certain good.

    if country A does 100 and B 50

    then, A has an absolute advantage as it can out produce B

    the competitive advantage will when the opportunity cost of making a cartain product is lower than the other.

    If A can do 500 of anther goods

    while B can do 50

    then the comparative advantage favors B

    as it cost 50 / 50 = 1 good to produce the produce

    while for country A it cost: 500/50 = 10 goods to produce it.

    GIven this analysis, the option B will be the correct

    a country with an absolute advantage might or might nothave a comparative advantage as well.
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