If a person has the lowest opportunity cost of producing a particular good,that person has a(n)
A) comparative advantage.
B) absolute advantage.
C) comparative and absolute advantage.
D) absolute advantage and a possible comparative advantage.
E) relative advantage.

Question

Quizplus · Accepted Answer

The concept of opportunity cost is essential in determining comparative advantage. If a person has the lowest opportunity cost of producing a particular good, then they have a comparative advantage in producing that good compared to others. Absolute advantage refers to the ability to produce a good using fewer resources compared to others, which is not necessarily the same as having the lowest opportunity cost. Therefore, the correct answer is A, as having the lowest opportunity cost indicates a comparative advantage.

If a Person Has the Lowest Opportunity Cost of Producing