If a country's domestic price of a good is lower than the world price, then that country has a comparative advantage in producing that good.

Name: If a country's domestic price of a good is lower than the world price, then that country has a comparative advantage in producing that good.
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Question

Quizplus · Accepted Answer

A lower domestic price compared to the world price indicates that the country can produce the good more efficiently, suggesting a comparative advantage.

If a Country's Domestic Price of a Good Is Lower