If one nation is able to produce a good at a lower opportunity cost than another,it has
A)an absolute advantage in that good.
B)a comparative advantage in that good.
C)a productivity advantage in that good.
D)a technological advantage in that good.
E)no reason to want to trade that good.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost than another country. This means that even if one country may be more efficient and have an absolute advantage in producing a good, it may still benefit from trading with another country that has a lower opportunity cost for producing that same good. Therefore, the nation with the lower opportunity cost has a comparative advantage in that good.

If One Nation Is Able to Produce a Good at a Lower