Canada has a comparative advantage in producing airplanes if
A)it can produce airplanes at a lower dollar cost than another country.
B)it can produce a larger quantity of airplanes than another country.
C)it has a larger quantity of skilled aviation workers than another country.
D)it can produce airplanes at a higher opportunity cost than another country.
E)it can produce airplanes at a lower opportunity cost than another country.

Question

Quizplus · Accepted Answer

Canada has a comparative advantage in producing airplanes if it can produce airplanes at a lower opportunity cost than another country. This means that Canada can produce airplanes at a lower cost in terms of the next best alternative production compared to another country. In other words, if Canada were to switch production from airplanes to another good, the cost of producing that good would be higher than the cost of producing airplanes.

Canada Has a Comparative Advantage in Producing Airplanes If