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

Question

Quizplus · Accepted Answer

A person has a comparative advantage in producing a good or service if they can produce that good or service at a lower opportunity cost than someone else. This means that they give up less of other goods or services to produce a unit of the good in question compared to the other person. Therefore, the correct answer is C - the person has a lower opportunity cost in producing that product than someone else.

When a Person Has a Comparative Advantage in Producing a Good