Individuals A and B both produce good X. We say that A has a comparative advantage in the production of good X if A:

Individuals A and B both produce good X. We say that A has a comparative advantage in the production of good X if A:



A) has a lower opportunity cost of producing good X than has B.
B) can produce more units of X in a given time period than can B.
C) has a lower opportunity cost of producing good X than of producing good Y.
D) can produce X using newer technology than can B.


Answer: A


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