In determining comparative advantage, cost is measured in terms of

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Cost in comparative advantage is measured in terms of opportunities forgone. This means that countries will choose to produce the goods that have the lowest opportunity cost, meaning that they have the greatest comparative advantage in producing those goods. The opportunity cost is the value of the next best alternative that is given up when a choice is made. So, in determining comparative advantage, the cost is measured in terms of the opportunities that are forgone when a country chooses to produce a certain good instead of another.

In Determining Comparative Advantage, Cost Is Measured in Terms of