If Canada has a comparative advantage relative to Mexico in the production of timber, then
A) the explicit cost of production for timber is lower in Canada than in Mexico.
B) the opportunity cost of production for timber is lower in Canada than in Mexico.
C) the implicit costs of production for timber are lower in Canada than in Mexico.
D) the average cost of production for timber is lower in Canada than in Mexico.

Question

Quizplus · Accepted Answer

Comparative advantage means that a country can produce a good or service with a lower opportunity cost than another country. Therefore, the answer is that the opportunity cost of production for timber is lower in Canada than in Mexico.

If Canada Has a Comparative Advantage Relative to Mexico in the Production