Question

Which relationship best illustrates a comparison of absolute advantage and comparative advantage?

Answer 1

The best way to illustrate the relationship of the comparison is a country using a comparative advantage can create a merchandise at a smaller opportunity cost, even though a different country has an absolute advantage in the manufacture of all those goods.

Answer 2

A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.