To determine which of two producers has a comparative advantage,you would need to know their:
A) increasing relative costs.
B) opportunity costs of production for both goods.
C) normative beliefs.
D) zero-sum games.
E) level of investment.

Question

Quizplus · Accepted Answer

To determine comparative advantage, we need to know the opportunity cost of production for both goods. The producer with the lower opportunity cost for producing a specific good has a comparative advantage in that good. The other options are not relevant for determining comparative advantage.

To Determine Which of Two Producers Has a Comparative Advantage,you