Comparative advantage is related most closely to which of the following?
A)output per hour
B)opportunity cost
C)efficiency
D)bargaining strength in international trade

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity cost, which is the value of what must be given up to obtain a particular good. Countries that have a lower opportunity cost in producing a particular good have a comparative advantage in its production. Therefore, option B, opportunity cost, is the closest match.

Comparative Advantage Is Related Most Closely to Which of the Following