-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, Chen has comparative advantage in production of
A) Good X.
B) Good Y.
C) both goods.
D) neither good.

Question

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, Chen has comparative advantage in production of
A) Good X. 
B) Good Y. 
C) both goods. 
D) neither good.

Quizplus · Accepted Answer

Chen has a comparative advantage in the production of a good if he can produce it at a lower opportunity cost than others. Comparative advantage is determined by comparing the opportunity costs of producing goods between different producers.

-According to the Above Table, Which Assumes That Opportunity Costs