If Spain can produce a particular product at a lower relative cost than Portugal, what kind of advantage does Spain have?
A) an absolute advantage in its production
B) a resource advantage for all goods
C) a production advantage for all goods
D) a comparative advantage in its production

Question

Quizplus · Accepted Answer

When one country can produce a particular product at a lower relative cost than another country, it has a comparative advantage. This means that it can produce the good at a lower opportunity cost, which gives it an advantage in terms of trade. Therefore, the best choice is option D, a comparative advantage in its production.

If Spain Can Produce a Particular Product at a Lower