A country will specialize in that good in which
A)it has absolute advantage.
B)it has a moderate cost of production.
C)it can produce at minimum average cost.
D)it has comparative advantage.

Question

Quizplus · Accepted Answer

Comparative advantage is when a country can produce a good or service at a lower opportunity cost than another country. This means that the country can produce the good or service with a lower foregone output of other goods and services. Therefore, a country should specialize in goods or services where they have a comparative advantage in order to maximize efficiency and trade with other countries.

A Country Will Specialize in That Good in Which