Comparative advantage in production of a good occurs
A) when a country can produce that good using fewer resources than could other countries.
B) when a country can produce that good at a greater opportunity cost than could other countries.
C) when a country can produce that good at a lower opportunity cost than could other countries.
D) when a country has a greater supply of natural resources required to produce that good, compared to other countries.

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost than other countries. This means that the country must give up less of other goods and services to produce one unit of the good in question. It is not necessarily about using fewer resources or having a greater supply of natural resources.

Comparative Advantage in Production of a Good Occurs