Comparative advantage in production of a product is reflected in:
A) a lower relative price.
B) a lower opportunity cost.
C) higher labor productivity.
D) a lower relative price and a lower opportunity cost.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by which producer has the lower opportunity cost in producing a good. It often results in a lower relative price for that good when trade occurs, reflecting both a lower opportunity cost and potentially a lower relative price in the market.

Comparative Advantage in Production of a Product Is Reflected In