Question

Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage? Explain.

Short answer

Yes, it is possible to have a comparative advantage in the production of goods but not absolute advantage.

Step-by-step solution

Step 1. Meaning of absolute advantage.

A country has an absolute advantage in those products in which it has a productivity edge over other countries.

Step 2. Meaning of comparative advantage.

A country has a comparative advantage when it can produce a good at a lower cost in terms of other goods.

Step 3. Can a product have a comparative advantage but not absolute advantage.

Yes, it is possible to have a comparative advantage in the production of goods but not absolute advantage. This is because absolute advantage takes into consideration the resources while comparative advantage takes into account opportunity cost and the two being different concepts influence the production process differently.