25
QuizMultiple Choice

Unit 2 Test

Question 25 • (OC27) Economics-2102310-Sem-Meadows

A producer with a comparative advantage has the ability to produce a good or service at

Answer
A
a lower opportunity cost than any competitor can.
B
a faster rate than any competitor can.
C
a greater volume than any competitor can.
D
a lower cost than any competitor can.

Explanation

Comparative advantage means being able to produce a good or service at a lower opportunity cost than another producer. Opportunity cost is what must be given up to make it, so producing faster, producing more, or having a lower money cost alone does not establish comparative advantage.

AI-written and checked against the verified answer.

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