Question

A country that has an absolute advantage in producing corn does not necessarily have a comparative advantage in producing corn. True or false?.

Answer 1

A country that has an absolute advantage in producing corn does not necessarily have a comparative advantage in producing corn -  this statement is true.

What are absolute advantages and comparative advantages?

Comparative advantage exists when a country produces a good or service for a more subordinate opportunity cost than other countries. Opportunity cost estimates a trade-off. A nation with a comparative benefit creates the trade-off worth it. Absolute advantage is an economic concept that exists utilized to refer to a party’s superior production capability. Specifically, it directs to the ability to produce a particular good or service at a lower cost.

Comparative advantage exists concerned with producing at a lower opportunity cost Having absolute advantage doesn’t necessarily indicate an economy should produce that good. It is not advisable to try and produce everything. Absolute Advantage: The ability of an actor to produce better of a good or service than a competitor. Comparative Advantage: The capability of an actor to produce a good or service for a lower opportunity cost than a competitor.

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Answer 2

A country that has an absolute advantage in producing corn does not necessarily have a comparative advantage in producing corn -  this statement is true.

What are absolute advantage and comparative advantage?

Comparative advantage is when a country produces a good or service for a lower opportunity cost than other countries. Opportunity cost measures a trade-off. A nation with a comparative advantage makes the trade-off worth it. Absolute advantage, economic concept that is used to refer to a party’s superior production capability. Specifically, it refers to the ability to produce a certain good or service at lower cost. Comparative advantage is concerned with producing at a lower opportunity cost Having absolute advantage doesn’t necessarily mean an economy should produce that good. It is not advisable to try and produce everything.

Learn more about absolute advantage and comparative advantage, refer:

brainly.com/question/8141905

#SPJ4