When one producer has a comparative advantage in production,she:
A) can produce more output than someone else using the same quantity of resources.
B) can produce a good at a lower opportunity cost than someone else.
C) does not benefit from trade with other producers.
D) is unable to reach her production possibilities frontier (PPF).
E) trades only with others who have the same comparative advantage.

Question

Quizplus · Accepted Answer

When a producer has a comparative advantage in production, it means that they can produce a good at a lower opportunity cost than someone else. This means that they can produce more of that good, or trade it for other goods with someone who has a higher opportunity cost in producing that good. So, option B is the correct answer.

When One Producer Has a Comparative Advantage in Production,she