As long as people have different _____,everyone has a comparative advantage in something.
A)direct costs
B)benefits
C)utility
D)opportunity costs

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity costs, which are the benefits forgone by choosing one option over another. Therefore, as long as people have different opportunity costs, each person will have a comparative advantage in something. Direct costs (A) and benefits (B) do not factor into comparative advantage, and while utility (C) can influence decision-making, it is not the basis for comparative advantage.

As Long as People Have Different _____,Everyone Has a Comparative