A farmer has a comparative advantage at growing wheat if his cost of growing wheat is smaller than his cost of growing any other crop.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than others, not necessarily at a lower absolute cost. It's about being relatively more efficient at producing one good over another, not just having a smaller cost in absolute terms.

A Farmer Has a Comparative Advantage at Growing Wheat If