One country has a comparative advantage in the production of a good if:

Question

Quizplus · Accepted Answer

A country has a comparative advantage in the production of a good if it has a lower opportunity cost in the production of the good than another country. Opportunity cost refers to the value of the next best alternative that must be given up in order to produce a good. Therefore, if a country can produce a good at a lower opportunity cost, it means that it is sacrificing less of the production of other goods and can produce more efficiently.

One Country Has a Comparative Advantage in the Production of a Good