A country has a comparative advantage in producing one good if its labor cost is lower than that for other countries.

Name: A country has a comparative advantage in producing one good if its labor cost is lower than that for other countries.
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Question

Quizplus · Accepted Answer

Comparative advantage is determined by the opportunity cost of producing goods, not just labor costs. A country has a comparative advantage if it can produce a good at a lower opportunity cost compared to other countries.

A Country Has a Comparative Advantage in Producing One Good