To determine which of two producers has a comparative advantage,you would need to know:
A) their increasing relative costs.
B) the opportunity costs of production for both goods.
C) their normative beliefs.
D) their zero-sum games.
E) their levels of investment.

Question

Quizplus · Accepted Answer

To determine which of two producers has a comparative advantage, you need to compare the opportunity costs of production for both goods. Opportunity cost is the cost of giving up one opportunity for another, and it helps determine which producer is relatively more efficient at producing a particular good. The other options (increasing relative cost, normative beliefs, zero-sum games, and levels of investment) do not directly relate to comparative advantage.

To Determine Which of Two Producers Has a Comparative Advantage,you