Comparative advantage occurs when a person or a country can produce a good or service at a lower ____ than others.

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity cost, which is the value of the next best alternative forgone when a choice is made. It means that the person or the country has to give up less of another good or service when producing a particular good or service compared to others. Therefore, the correct answer is C) opportunity cost. Marginal cost, variable cost, and total cost are not directly related to comparative advantage.

Comparative Advantage Occurs When a Person or a Country Can