If Xavier can produce sandwiches at a lower opportunity cost than Kimani, then
A) Xavier has a comparative advantage in the production of sandwiches.
B) Kimani has a comparative advantage in the production of sandwiches.
C) Xavier should not produce sandwiches.
D) Xavier is capable of producing more sandwiches than Kimani in a given amount of time.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by who can produce a good at a lower opportunity cost, not by the absolute number of goods produced.

If Xavier Can Produce Sandwiches at a Lower Opportunity Cost