Comparative advantage leads to producing at a:
A) higher opportunity cost.
B) lower opportunity cost.
C) higher dollar cost.
D) point where costs just begin to fall.

Question

Quizplus · Accepted Answer

Comparative advantage allows countries (or individuals or firms) to produce the goods they have a lower opportunity cost in producing. This means that they can produce the good more efficiently, requiring fewer resources and less time, and ultimately resulting in a lower opportunity cost. Therefore, comparative advantage leads to producing at a lower opportunity cost.

Comparative Advantage Leads to Producing at A