In the theory of comparative advantage, a good should be produced in that nation where

A) the production possibilities line lies further to the right than the trading possibilities line.
B) its cost is least in terms of alternative goods that might otherwise be produced.
C) its absolute cost in terms of real resources used is least.
D) its absolute money cost of production is least.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, enabling more efficient trade.

Production Possibilities Line

A curve depicting all maximum output possibilities for two goods, given a set of inputs.

Trading Possibilities Line

A graphical representation showing the combinations of goods that a country can produce or trade given the resource constraints and technology.