An individual has a comparative advantage in production if that individual:
A)can produce at the highest opportunity cost.
B)is more self-sufficient than others.
C)can produce at the lowest opportunity cost.
D)all of the above

Question

An individual has a comparative advantage in production if that individual:​
A)​can produce at the highest opportunity cost.
B)​is more self-sufficient than others.
C)​can produce at the lowest opportunity cost.
D)​all of the above

Quizplus · Accepted Answer

A comparative advantage in production means that an individual can produce a good or service with the lowest opportunity cost, which means they have to give up fewer resources to produce that good or service than someone else would. This makes them more efficient and able to produce more. Self-sufficiency does not necessarily equate to having a comparative advantage. Option A is incorrect because producing at the highest opportunity cost means an individual is less efficient and has to give up more resources to produce the good or service. Option D is incorrect because not all three options apply - only option C is correct.

An Individual Has a Comparative Advantage in Production If That