Comparative advantage implies that you
A) can produce more units of a good or service than another.
B) can produce a good or service at a lower opportunity cost.
C) can produce goods with more capital resources.
D) can produce goods with more human resources.

Question

Quizplus · Accepted Answer

Comparative advantage means being able to produce a good or service at a lower opportunity cost than others. This means that if a country has a comparative advantage in producing a certain good, they can produce that good at a lower opportunity cost compared to other countries or producers. It does not necessarily mean they can produce more units or have more resources, but rather they have a more efficient or cost-effective way of producing that particular good or service.

Comparative Advantage Implies That You