Question

When a country has a comparative advantage in the production of a good it mean that...

When a country has a comparative advantage in the production of a good it mean that it can produce this good at a lower apportunity cost than it trading

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Answer #1

Comparitive advantage means that a country is able to produce a particulat good and service at a lower oppurtunity cost than other countries and which makes that country a sole trader in the market.

So the country with comparitive advantage in a particular good or service will be able to produce at low cost and create market foir goods and it will be able to trade those goods for other goods. It will be able to produce at lower oppurtunit cost due to its economic factors and physical requirements of that good.

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