Asked by Shaan Sanghera on Jun 26, 2024
Verified
A country can still have an absolute advantage even if it cannot maintain a monopoly from producing a certain good.
Absolute Advantage
The ability of a country, company, or individual to produce a good or service more efficiently than competitors, using fewer resources.
Monopoly
Market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes.
- Understand the basic principles of international trade and the concepts of absolute and comparative advantage.
Verified Answer
CE
Cire Ekcyquel GamboaJun 29, 2024
Final Answer :
True
Explanation :
Having an absolute advantage means a country can produce a good more efficiently than other countries, but it doesn't necessarily mean it can maintain a monopoly, as other factors like competition, trade policies, and market demand also play roles.
Learning Objectives
- Understand the basic principles of international trade and the concepts of absolute and comparative advantage.
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