If one nation is able to produce a good at a lower opportunity cost than another,it has
A)an absolute advantage in that good.
B)a comparative advantage in that good.
C)a productivity advantage in that good.
D)a technological advantage in that good.

Question

Quizplus · Accepted Answer

The concept of comparative advantage states that a country should specialize in producing and exporting goods in which it has a lower opportunity cost (i.e. gives up less of one good to produce another) compared to another country. This means that the country has a comparative advantage in that good, and should trade with the other country to maximize overall production efficiency.

If One Nation Is Able to Produce a Good at a Lower