If Cowland can produce milk at a lower opportunity cost than any other nation,Cowland is said to have a(n)________ in the production of milk.

Question

Quizplus · Accepted Answer

Cowland having a lower opportunity cost in producing milk than any other nation means it has a comparative advantage in the production of milk. Comparative advantage refers to the ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.

If Cowland Can Produce Milk at a Lower Opportunity Cost