To determine which of two producers has a comparative advantage,one would need to know their
A) increasing relative costs.
B) opportunity costs of production for both goods.
C) normative beliefs.
D) zero-sum games.
E) levels of investment.

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity cost. Therefore, to determine which producer has a comparative advantage, one would need to know their opportunity costs of production for both goods.

To Determine Which of Two Producers Has a Comparative Advantage,one