If the domestic price of a good is low relative to the world price,the country has a comparative advantage in producing that good.

Question

Quizplus · Accepted Answer

If a country's domestic price of a good is low relative to the world price, it means that the country can produce and sell that good at a lower cost than other countries. This indicates that the country has a comparative advantage in producing that good, as it can produce it more efficiently and cost-effectively than other countries.

If the Domestic Price of a Good Is Low Relative