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

Question

Quizplus · Accepted Answer

If a country can produce rice with a lower opportunity cost than its trading partners, then it has a comparative advantage in the production of rice. This means that it can produce rice at a lower cost (in terms of giving up the production of other goods) than its trading partners. It does not necessarily have an absolute advantage in the production of rice or any other goods. And it does not mean that the country cannot produce other goods at all, just that it is relatively better at producing rice compared to its trading partners.

If a Country Can Produce Rice with a Lower Opportunity