When a person has a comparative advantage in producing a good or service, the person has
A) a higher opportunity cost in producing that product than someone else.
B) an increasing marginal benefit in producing the good.
C) a decreasing opportunity cost in producing that product.
D) a constant opportunity cost in producing that product.
E) a lower opportunity cost in producing that product than someone else.

Question

Quizplus · Accepted Answer

A person with a comparative advantage in producing a good or service has a lower opportunity cost in producing that product than someone else. This means that they can produce that good or service at a lower cost (in terms of trade-off with producing other goods or services) than someone else.

When a Person Has a Comparative Advantage in Producing a Good