If country A produces S at a lower relative price than country B,A is said to have a comparative advantage in S.

Question

Quizplus · Accepted Answer

This statement is true. Comparative advantage is a concept in economics that describes the ability of a country to produce a particular good or service at a lower opportunity cost than another country. When a country can produce a good or service at a lower relative price, it means they can produce it more efficiently and therefore have a comparative advantage in producing that good or service.

If Country a Produces S at a Lower Relative Price