The United States has a comparative advantage in producing airplanes if
A) it can produce them at a lower opportunity cost than can other nations.
B) it can produce them at a lower dollar cost than can other nations.
C) it can produce a larger quantity than can other nations.
D) it has a larger quantity of skilled workers than do other nations.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by the ability to produce a good at a lower opportunity cost than other producers, not by absolute cost, quantity, or resource availability.

The United States Has a Comparative Advantage in Producing Airplanes