If country A has a comparative advantage in the production of good X over country B, then

Question

Quizplus · Accepted Answer

A comparative advantage exists when a country can produce a good at a lower opportunity cost than another country. This means that country A can produce good X at a lower opportunity cost than country B. Therefore, the answer is C - the opportunity cost of producing X in country A is lower than in country B. It is not necessary for country A to have an absolute advantage in the production of good X, and we cannot determine whether the opportunity cost of producing X in country A is higher or lower than in country B without additional information.

If Country a Has a Comparative Advantage in the Production