If a country has a higher opportunity cost to produce a good, that means that this country can never possess a comparative advantage in the production of any good.

Question

​If a country has a higher opportunity cost to produce a good, that means that this country can never possess a comparative advantage in the production of any good.

Quizplus · Accepted Answer

A country with a higher opportunity cost in producing a particular good can still possess a comparative advantage in producing another good if it has a lower opportunity cost in producing that other good compared to other countries. Comparative advantage is relative and depends on the opportunity costs of producing goods across different countries.

​If a Country Has a Higher Opportunity Cost to Produce

If a Country Has a Higher Opportunity Cost to Produce