When a producer has a comparative advantage at producing a good,it means the producer:
A)can produce more of that good than others with the same number of workers.
B)has the ability to produce a good or service at a lower opportunity cost than others.
C)has no reason to trade with others.
D)is efficient.

Question

Quizplus · Accepted Answer

A producer has a comparative advantage at producing a good when they can produce it at a lower opportunity cost than others. This means they can produce more of that good with the same resources or produce the same amount of the good with fewer resources. This gives the producer an advantage in terms of cost and efficiency which can be leveraged for trade with other producers. Therefore, option B is the correct answer. Choices A, C, and D are either unrelated or incorrect.

When a Producer Has a Comparative Advantage at Producing a Good,it