A resource is said to have a comparative advantage if:
A) it is better suited to the production of one good than to the production of an alternative good.
B) it is equally suited to the production of all goods.
C) its suitability to the production of one good changes as it produces more of that good.
D) its suitability to the production of one good does not change as it produces more of that good.

Question

Quizplus · Accepted Answer

A resource has a comparative advantage when it is better suited to the production of one good compared to another, allowing it to produce that good at a lower opportunity cost than other resources.

A Resource Is Said to Have a Comparative Advantage If