Under the principle of comparative advantage total output is greatest when each product is made by the country that

A) enjoys an absolute advantage.
B) has the lowest opportunity cost.
C) has the lowest wage rates.
D) has the lowest degree of specialization.

The principle of comparative advantage suggests that countries should specialize in producing goods and services in which they have the lowest opportunity cost. Therefore, total output will be greatest when each product is made by the country that has the lowest opportunity cost. This means that the country can produce that particular good or service at a lower cost (in terms of other goods or services foregone) than any other country, and thus has a comparative advantage in that product.