A person has a comparative advantage in an activity if that person can
A) perform the activity at a lower opportunity cost than anyone else.
B) perform that activity at a higher opportunity cost than anyone else.
C) produce fewer goods in a given amount of time than another person.
D) produce more goods in a given amount of time than another person.

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity cost, which is the value of the next best alternative forgone. Therefore, a person has a comparative advantage in an activity if they can perform that activity at a lower opportunity cost than anyone else. This means that they give up less of other goods or activities in order to produce a unit of the good in question, making them more efficient and productive in that particular activity.

A Person Has a Comparative Advantage in an Activity If