If a country can produce cars with a lower opportunity cost than its trading partners,then it must have a:

Question

Quizplus · Accepted Answer

If a country can produce cars with a lower opportunity cost than its trading partners, then it has a comparative advantage in the production of cars. This means that it can produce cars at a lower cost than its trading partners, which gives it an advantage in the global market. Consequently, it is likely that the country will export cars and import other goods in which its trading partners have a comparative advantage. Thus, the correct answer is B - comparative advantage in cars.

If a Country Can Produce Cars with a Lower Opportunity