Comparative and Absolute Disadvantage
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Illustrate, using a hypothetical scenario (data), how a nation could have an absolute disadvantage in the production of two goods and could still have a comparative advantage in the production of one of them.
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Solution Summary
Can a country has comparative advantage even if it is absolutely disadvantaged in all of its goods? This answer says yes, that's the essence of comparative advantage.
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This is the whole reasoning behind comparative advantage.
Country A produces Good X for 3, Good Y for 6
Country B produces Good X for 4, ...
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