When A Producer Has A Comparative Advantage In Producing A Good? When a producer has a comparative advantage in producing a good, it means the producer: has the ability to produce the good at a lower opportunity cost than others. Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per
Which Of The Following Is True Of Comparative Advantage? Which of the following is true of comparative advantage? The law of comparative advantage states that the individual with the lower opportunity cost of producing a particular output should specialize in that output. … nations trade and specialize in the production of a good in which
When A Country Has A Comparative Advantage In The Production Of A Good? Transcribed image text: When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of
What Is The Basis For Trade Absolute Or Comparative Advantage? Absolute advantage refers to the capability to generate a product by deploying fewer factors of production compared to another producer. On the other hand, comparative advantage is the capability to generate a product at a lower opportunity cost compared to another producer. Is trade based