What happens if a country chooses to specialize in a product in which it has an absolute advantage over others but in which it does not have a comparative advantage?
a. Such a situation cannot exist in reality.
b. Nobody will buy the products it makes because the imports will be cheaper.
c. By specializing in a product in which it has an absolute advantage, this country will still be able to maximize its profits.
d. The country will use its resources inefficiently.
Ans: d
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