Canada has a comparative advantage in producing airplanes if
A)it can produce them at a lower dollar cost than another country.
B)it can produce a larger quantity than another country.
C)it has a larger quantity of skilled workers than another country.
D)it can produce them at a higher opportunity cost than another country.
E)it can produce them at a lower opportunity cost than another country.

Question

Quizplus · Accepted Answer

A country has a comparative advantage in producing a good if it can produce it at a lower opportunity cost than another country. In other words, if Canada can produce airplanes at a lower opportunity cost (giving up fewer resources, such as labor and capital) than another country, then it has a comparative advantage in producing airplanes.

Canada Has a Comparative Advantage in Producing Airplanes If