In a two-nation world, comparative advantage means that one nation can produce:

Question

Quizplus · Accepted Answer

Comparative advantage means that a country can produce a particular good or service at a lower opportunity cost than other countries. In other words, a country has a comparative advantage if it can produce a good or service at a lower cost in terms of alternative goods or services that it could otherwise produce. This means that the country can produce the good or service more efficiently than other countries, and therefore can sell it at a lower price, making it more competitive in the global marketplace.

In a Two-Nation World, Comparative Advantage Means That One Nation