If you have a comparative advantage in producing a good, it implies:
A)you have a lower marginal cost of producing that good.
B)you have a higher marginal cost of producing that good.
C)you have a lower total cost of producing that good.
D)you have a higher total cost of producing that good.

Question

Quizplus · Accepted Answer

If you have a comparative advantage in producing a good, it means that you can produce that good at a lower opportunity cost than someone else. Opportunity cost is the cost of foregoing one option for another. This lower opportunity cost implies that you have a lower marginal cost of producing that good, making you more efficient at producing that good than others. Therefore, choice A is correct.

If You Have a Comparative Advantage in Producing a Good