When a producer has a comparative advantage in 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 the good at a lower opportunity cost than others.
C) has no reason to trade with others.
D) is efficient in production.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability to produce a good at a lower opportunity cost than others. This means that the producer can produce a given quantity of the good at a lower cost, in terms of other goods that they could have produced instead. Therefore, the producer is better off specializing in producing the good they have a comparative advantage in, and trading with others for goods that they do not produce efficiently.

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