Dynamic comparative advantage arises from
A) increasing opportunity cost.
B) learning- by- doing.
C) absolute advantage.
D) decreasing marginal benefit.

Question

Quizplus · Accepted Answer

Dynamic comparative advantage arises from learning-by-doing. This occurs when a country produces a good more efficiently over time due to the accumulation of experience and knowledge. As a result, the opportunity cost of producing that good decreases relative to other goods, leading to a comparative advantage in that good.

Dynamic Comparative Advantage Arises from