Whenever a nation has a lower opportunity cost of producing any good or service in relative terms, that nation is said to have:

Question

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Absolute advantage refers to a country's ability to produce a good or service with fewer resources than another country, while comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country. Therefore, if a nation has a lower opportunity cost of producing any good or service in relative terms, it has a comparative advantage. Choices C and D may contribute to a nation's comparative advantage, but they alone do not indicate it.

Whenever a Nation Has a Lower Opportunity Cost of Producing