The economy that has the lowest cost for producing a particular good is said to have:
A)a technological advantage.
B)a comparative advantage.
C)a production possibility frontier.
D)an increasing opportunity cost.

Question

Quizplus · Accepted Answer

The concept of comparative advantage refers to the ability of a country, company, or individual to produce a good or service at a lower opporunity cost than others, meaning that it can produce the good more efficiently and at a lower cost. Therefore, the economy with the lowest cost for producing a particular good has a comparative advantage in producing that good.

The Economy That Has the Lowest Cost for Producing a Particular