Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is ________ the world price.
A)equal to
B)greater than
C)not comparable to
D)at least double
E)less than

Question

Quizplus · Accepted Answer

Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is lower than the world price. This is because a lower price indicates that Canada can produce hardwood at a lower cost compared to other countries. Therefore, Canada can sell hardwood at a lower price in the international market and still make a profit.

Canada Has a Comparative Advantage in Producing Hardwood If the Canadian