The theory of comparative advantage is based on:

Question

Quizplus · Accepted Answer

The theory of comparative advantage is based on the idea of relative opportunity costs, meaning that countries should specialize in producing goods or services where they have a lower opportunity cost (in terms of alternate goods or services they could produce) compared to other countries, rather than focusing solely on absolute costs of production. This leads to increased efficiency and overall productivity in global trade.

The Theory of Comparative Advantage Is Based On