Someone has a comparative advantage in producing a good whenever
A) one enjoys producing that good.
B) one can produce more of the good than someone else using the same resources.
C) one's opportunity cost is constant.
D) one's opportunity cost of producing that good is lower than that of other producers.
E) one has specific training in the production of that good.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a person or country to produce a particular good at a lower opportunity cost than someone else. In other words, it means that someone can produce a good with lower foregone alternative production than others. Therefore, if someone's opportunity cost of producing a good is lower than the opportunity cost of other producers, they have a comparative advantage in producing that good.

Someone Has a Comparative Advantage in Producing a Good Whenever