A person has a comparative advantage in the production of a good when she or he can produce the product at a(n)________ opportunity cost compared to another person.
A) higher
B) lower
C) equal
D) diminishing
E) increasing

Question

Quizplus · Accepted Answer

A person has a comparative advantage when they can produce a good at a lower opportunity cost than another person. This means that they give up less of one good to produce more of the other, allowing them to produce more efficiently and at a lower cost.

A Person Has a Comparative Advantage in the Production of a Good