When does a country have a comparative advantage in a product
A)when the world price is lower than its domestic price
B)when the world price is higher than its domestic price
C)when a country can produce a larger quantity of the product
D)when a country has better technology to produce the product

Question

Quizplus · Accepted Answer

A country has a comparative advantage in a product when it can produce it at a lower opportunity cost than other countries, which often means its domestic price is lower than the world price.

When Does a Country Have a Comparative Advantage in a Product