A person has a comparative advantage in producing a particular good if that person
A) has higher productivity in producing it than anyone else has.
B) can produce it at lower opportunity cost than anyone else can.
C) has less desire to consume that good than anyone else has.
D) has more human capital related to that good than anyone else has.
B
Economics
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Explain why the marginal cost of production must increase if the marginal product of a variable resource is decreasing
What will be an ideal response?
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Market failure occurs when
a. all Pareto improvements are undertaken b. refusal to make a side payment reduces Pareto efficiency c. the economy operates above the production possibilities frontier d. markets are perfectly competitive e. some Pareto improvements are not made
Economics