Select the correct definition of the term "comparative advantage."

A. the ability to produce a good or service at a higher opportunity cost than another

B. the ability to produce a good or service at a lower opportunity cost than another

C. the ability to produce less of a good or service than another over a specified time period

D. a nation offering more favorable trade policy with its allies than with other countries

E. the ability to produce more of a good or service than another over a specified time period

When trading with more developed countries,

A. less developed countries have a comparative advantage in the production of all goods or services.

B. less developed countries do not have a comparative advantage in the production of any goods or services.

C. less developed countries have a comparative advantage in the production of some goods or services.

Question

Daniel Kemp

Business

7 October, 13:14

Select the correct definition of the term "comparative advantage."

A. the ability to produce a good or service at a higher opportunity cost than another

B. the ability to produce a good or service at a lower opportunity cost than another

C. the ability to produce less of a good or service than another over a specified time period

D. a nation offering more favorable trade policy with its allies than with other countries

E. the ability to produce more of a good or service than another over a specified time period

When trading with more developed countries,

A. less developed countries have a comparative advantage in the production of all goods or services.

B. less developed countries do not have a comparative advantage in the production of any goods or services.

C. less developed countries have a comparative advantage in the production of some goods or services.

+4

Answers (1)

Know the Answer?

Bandit · Answer 1

B.

Explanation:

First of all, it's the only answer that make sense, because we're talking about competitive. So, in order to be competitive you need to offer goods or services with high quality and lower costa than the competition.

This is like a competitive rule for organisations. When a company has this ability, you can say that is a high competitive company.