When a person has a comparative advantage in producing a good or service,the person has
A) a higher opportunity cost in producing that product than someone else.
B) a constant opportunity cost in producing that product.
C) a decreasing opportunity cost in producing that product.
D) a lower opportunity cost in producing that product than someone else.
E) an increasing marginal benefit in producing the good.

Question

Quizplus · Accepted Answer

When a person has a comparative advantage in producing a good or service, they have a lower opportunity cost in producing that product than someone else. This means that they can produce the good or service at a lower cost than others and therefore have a comparative advantage in producing it. For example, if person A can produce 10 shirts or 5 hats in an hour, while person B can produce 5 shirts or 5 hats in an hour, person A has a comparative advantage in producing shirts because they can produce more shirts in the same amount of time than person B and at a lower opportunity cost.

When a Person Has a Comparative Advantage in Producing a Good