The concept of comparative advantage in international trade is based on _ as opposed to absolute costs.

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity costs, which refer to the value of the next best alternative forgone when making a decision. It is not based on absolute costs, which only consider the monetary or physical costs of producing a good or service. Therefore, option A is the correct choice.

The Concept of Comparative Advantage in International Trade Is Based