Someone has a comparative advantage in producing a good if they can produce that good
A) in greater quantities.
B) at a lower opportunity cost.
C) using more capital and less labor.
D) using more labor and less capital.

Question

Quizplus · Accepted Answer

The definition of comparative advantage is the ability to produce a good at a lower opportunity cost. Therefore, option B is the correct answer. A is incorrect because greater quantities do not necessarily mean lower opportunity cost. C and D are incorrect because the use of more capital or labor does not necessarily indicate a comparative advantage.

Someone Has a Comparative Advantage in Producing a Good If