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Homework answers / question archive / Which of the following statements is true? A) The country with the higher opportunity cost of producing a good has the comparative advantage in producing that good

Which of the following statements is true? A) The country with the higher opportunity cost of producing a good has the comparative advantage in producing that good

Economics

Which of the following statements is true?

A) The country with the higher opportunity cost of producing a good has the comparative advantage in producing that good.

B) A country can have a comparative advantage in the production of all goods.

C) A country that has the absolute advantage in producing a good also has the comparative advantage in producing that good.

D) There are mutually beneficial gains from trade if opportunity costs differ.

Option 1

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Option 2

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