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By definition, someone who has a comparative advantage in producing soft drinks must also have an absolute advantage in producing soft drinks. True or False

User Theister
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Final answer:

False. By definition, someone who has a comparative advantage in producing soft drinks does not need to have an absolute advantage in producing soft drinks.

Step-by-step explanation:

False. By definition, someone who has a comparative advantage in producing soft drinks does not need to have an absolute advantage in producing soft drinks.

Comparative advantage refers to the ability to produce a good or service at a lower opportunity cost compared to another country or individual. It is possible for someone to have a comparative advantage in producing soft drinks even if they do not have an absolute advantage. For example, a country may have a lower opportunity cost of producing soft drinks because of access to cheaper resources or more efficient production techniques, even if it does not have an absolute advantage in overall production capacity.

User Marwin
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