A country has a (an)__________ in the production of a good it produces at lower opportunity cost than another country.

Question

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According to the theory of comparative advantage, a country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost than another country. This means that the country can produce that good more efficiently, in terms of the opportunity cost of producing other goods, than the other country. This allows for specialization and trade, leading to mutual benefits for both countries involved.

A Country Has a (An)__________ in the Production of a Good