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A Country Has a Comparative Advantage If

Question 32

Multiple Choice

A country has a comparative advantage if:


A) it can produce a commodity at a lower opportunity cost than its trading partner.
B) it can produce more of a good or service with the same inputs as its trading partner.
C) it can produce a commodity at a lower average cost than its neighbor.
D) labor costs are, on average, less than the trading partner's labor costs.

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