If country A has a comparative advantage in the production of good X over country B, then:_________.
i. country A should not trade with country B.
ii. the domestic opportunity cost of producing X in country A is higher than in country B.
iii. the domestic opportunity cost of producing X in country A is lower than in country B.
iv. the domestic opportunity cost of producing X in country A is higher or lower than in country B.

Question

06-12-2021
Business

Answered

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If country A has a comparative advantage in the production of good X over country B, then:_________.
i. country A should not trade with country B.
ii. the domestic opportunity cost of producing X in country A is higher than in country B.
iii. the domestic opportunity cost of producing X in country A is lower than in country B.
iv. the domestic opportunity cost of producing X in country A is higher or lower than in country B.

Sagot :

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