The law of comparative advantage states that the person who should produce a good is the person who:

A) has the lowest opportunity cost of producing that good.
B) can produce that good using the fewest resources.
C) will produce that good using the most expensive resources.
D) has the most desire for that good.
E) has produced that good in the past.

The law of comparative advantage states that the person who should produce a good is the person who has the lowest opportunity cost of producing that good. Opportunity cost is the value of the next best alternative that must be forgone in order to produce a certain good. Therefore, the person who has the lowest opportunity cost of producing a certain good has the most to gain from producing that good and should specialize in its production.