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True or False An absolute advantage guarantees a competitive advantage. True or False Unless two people...

True or False An absolute advantage guarantees a competitive advantage.

True or False Unless two people (producers) are identical, each will have a relative advantage in something.

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Answer #1

An absolute advantage guarantees a competitive advantage.False
A nation may have absolute advantage in both goods but comparitive advantage in only one good.

Unless two people (producers) are identical, each will have a relative advantage in something. False
Even if two producers are not identical i.e. one producer has absolute advantage in both goods, then also it may be possible that neither has relative advantage in something. This scenario would arise when opportunity cost is the same for both producers, even if the producers are not identical.

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