On what is comparative advantage based?
A)capital costs.
B)labour costs.
C)dollar price.
D)opportunity costs.

Question

Quizplus · Accepted Answer

Comparative advantage is based on the concept of opportunity cost, which is the cost of giving up one thing to do something else. A country has a comparative advantage in producing a good or service if it can produce it at a lower opportunity cost than another country. Therefore, the correct answer is D) opportunity costs.

On What Is Comparative Advantage Based