What Does the Concept of Comparative Advantage Show

question 125

Multiple Choice

What does the concept of comparative advantage show?

• A)One party with an absolute advantage in producing two different goods may export both of those goods to the other party.
• B)One party may be able to produce everything relatively more efficiently than another party.
• C)One party may be able to produce something at a lower dollar cost than another party.
• D)One party may be able to produce something at a lower opportunity cost than another party.

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