If a country has a comparative advantage in the production of one good,it must have a comparative disadvantage in the production of some other gooD.

Question

Quizplus · Accepted Answer

This statement is one of the basic principles of comparative advantage. If a country is more efficient in producing a particular good than another country, it can produce that good at a lower opportunity cost. However, this means that it must have a higher opportunity cost in producing some other good, which is why it specializes in the production of the good where it has a comparative advantage and trades for other goods where it has a comparative disadvantage.

If a Country Has a Comparative Advantage in the Production