If Canada has a comparative advantage over 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 higher 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 at a lower opportunity cost than another country. Therefore, if Canada has a comparative advantage over Mexico in the production of timber, it means that Canada can produce timber at a lower opportunity cost than Mexico. So, the correct answer is option B.

If Canada Has a Comparative Advantage Over Mexico in the Production