If Country A has a comparative advantage in the production of good X relative to Country B,

Question

Quizplus · Accepted Answer

If a country has a comparative advantage in the production of a good, it means that it can produce that good at a lower opportunity cost than another country. This implies that the country must have a lower opportunity cost for producing good X compared to Country B. Therefore, the correct answer is D, which states that the opportunity cost of producing X in Country A is lower than in Country B. We cannot say anything about absolute advantage or the production of other goods in Country A based solely on its comparative advantage in producing good X.

If Country a Has a Comparative Advantage in the Production