If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a(n)________ in the production of grapes.

Question

Quizplus · Accepted Answer

If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a comparative advantage in the production of grapes. This means that Italy can produce grapes at a lower opportunity cost relative to other goods it could produce than any other nation, making it more efficient to specialize in grape production and trade with other nations for goods it has a comparative disadvantage in producing.

If Italy Can Produce Grapes at a Lower Opportunity Cost