Asked by Tiara Singleton on Jun 03, 2024
Verified
A country enjoys a comparative advantage in the production of a good if that good can be produced at a lower cost in terms of other goods.
Comparative Advantage
The proficiency of an individual, a business, or a nation in generating a product or executing a service at a more economical opportunity cost than its competitors.
Lower Cost
Refers to a situation or strategy in which expenses are minimized or reduced.
- Acquire understanding of the concepts of absolute and comparative advantage within international commerce.
Verified Answer
ZK
Zybrea KnightJun 10, 2024
Final Answer :
True
Explanation :
A country has a comparative advantage in producing a good if it can produce it at a lower opportunity cost compared to other countries, meaning it sacrifices less of other goods to produce it.
Learning Objectives
- Acquire understanding of the concepts of absolute and comparative advantage within international commerce.
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