For a Person to Have a Comparative Advantage in Producing

question 171

True/False

For a person to have a comparative advantage in producing a product,he must be able to produce that product at a higher opportunity cost than his competitors.

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Definitions:

Purely Competitive Industry

An industry characterized by many buyers and sellers, free entry and exit, and a standardized product, leading to firms being price takers.

Monopolist

A market participant that is the sole provider of a good or service, thus controlling the entire market and having the ability to set prices unilaterally.

Identical Costs

Refers to costs that are the same across different products, services, or processes.