A producer has a comparative advantage over other producers if his production of the good involves:
A) more inputs.
B) fewer inputs.
C) a higher opportunity cost.
D) a lower opportunity cost.

Question

Quizplus · Accepted Answer

A producer has a comparative advantage if he can produce a good at a lower opportunity cost. This means that the producer can produce the good more efficiently, with fewer resources or input, than other producers. So, the correct answer is D, which states that the producer has a lower opportunity cost.

A Producer Has a Comparative Advantage Over Other Producers If