Table 13.14 shows the output of kumquats per month.

-A country has a comparative advantage over another only if it is able to produce all products more cheaply.

Question

Table 13.14 shows the output of kumquats per month.
 
-A country has a comparative advantage over another only if it is able to produce all products more cheaply.

Quizplus · Accepted Answer

Comparative advantage is based on opportunity cost, not just absolute cost. A country has a comparative advantage in producing a good if it can produce that good at a lower opportunity cost than another country. Therefore, it is not necessary for a country to produce all products more cheaply in order to have a comparative advantage.

Table 1314 Shows the Output of Kumquats Per Month