If Kingsley can sell paper at a lower opportunity cost than Todrick,then ________ has a(n)________ advantage in paper sales.
A) Kingsley; absolute
B) Todrick; absolute
C) Kingsley; positive
D) Kingsley; comparative
E) Todrick; comparative

Question

Quizplus · Accepted Answer

The term "opportunity cost" refers to the potential benefit that must be given up to pursue a certain action. Therefore, if Kingsley has a lower opportunity cost in selling paper than Todrick, it means that Kingsley would have to give up less potential benefit in order to sell paper compared to Todrick. This indicates that Kingsley has a comparative advantage in selling paper. Therefore, the best answer is D) Kingsley; comparative advantage.

If Kingsley Can Sell Paper at a Lower Opportunity Cost