Someone has a comparative advantage in producing a good if she can produce that good

A) in greater quantities.
B) at a lower opportunity cost.
C) using more capital and less labor.
D) using more labor and less capital.

Question

Crystal Rodriguez · Accepted Answer

Final Answer : B, Explanation :  Comparative advantage occurs when a person or country can produce a good at a lower opportunity cost than others. It doesn't necessarily mean producing more of the good, but rather being able to produce it more efficiently in terms of the opportunity cost of not producing other goods.

Someone has a comparative advantage in producing a good if she can produce that good

A) in greater quantities.
B) at a lower opportunity cost.
C) using more capital and less labor.
D) using more labor and less capital.

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Learning Objectives

Learning Objectives

Related questions

Someone has a comparative advantage in producing a good if she can produce that goodA) in greater quantities.B) at a lower opportunity cost.C) using more capital and less labor.D) using more labor and less capital.

Definitions

Learning Objectives

Learning Objectives

Related questions

Someone has a comparative advantage in producing a good if she can produce that good

A) in greater quantities.
B) at a lower opportunity cost.
C) using more capital and less labor.
D) using more labor and less capital.