Which of the Following Statements Is True

question 179

Multiple Choice

Which of the following statements is true?

• A) When two firms have the same opportunity cost of producing two goods, each firm will always have a comparative advantage in the production of both goods.
• B) When two firms have different opportunity costs of producing two goods, each firm will always have a comparative advantage in the production of one of the goods.
• C) The firm that has a lower opportunity cost of producing a good is said to have a comparative disadvantage in the production of that good.
• D) The firm that faces a lower opportunity cost of producing a good is said to have an absolute disadvantage in the production of that good.

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