Is it possible for a firm to have a comparative advantage in producing something without having an absolute advantage? Why or why not?
What will be an ideal response?
Yes, a firm can have a comparative advantage without having an absolute advantage if it can produce a good or service at a lower opportunity cost than competitors, even if it is not able to produce more of the good or service than its competitors.
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At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward. B) the real interest rate is above the equilibrium level. C) the real interest rate is below the equilibrium level. D) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward. E) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
If a conscientious manufacturer underestimates the true value of life, the manufacturer will likely fail to take all cost-justified precautions
Indicate whether the statement is true or false