If Mexico has a comparative advantage in oil compared to the U.S., it means that the opportunity cost of producing oil in Mexico is

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost compared to other countries. If Mexico has a comparative advantage in oil compared to the U.S., it means the opportunity cost of producing oil in Mexico is relatively low.

If Mexico Has a Comparative Advantage in Oil Compared to the U.S