If there are two producers and two products, which of the following cannot happen?
A) A producer has an absolute advantage on one product.
B) A producer has the comparative advantage on both products.
C) A producer has the comparative advantage on one product.
D) A producer has an absolute advantage on both products
pls give right answer fast
Answers
Answer:
C) A producer has the comparative advantage on one product
Answer
A producer has a comparative advantage on both products.
Explanation
Comparative advantage is the capacity to create goods and services at a lower opportunity cost, not necessarily at a higher volume or quality. A corporation, economy, nation, or individual with a competitive advantage is able to provide consumers a better value than its rivals. It is comparable to comparative advantage but different from it.
The company must be the lowest-cost supplier of its goods or services, it must deliver superior goods or services to its rivals, and/or it must concentrate on a certain market segment in order to get a competitive advantage over others in the same field or industry.
Therefore, a producer has a comparative advantage on both products.
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