Question

A country has a comparative advantage in the production of a good if it can produce that good _____than other nations.

a. at a lower cost
b. at a lower opportunity cost
c. using more labor and less capital
d. using fewer natural resources

Answer 1

A country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost than other nations. The prices of goods are also lower in the country. The answer would be letter B.