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If Country A has a comparative advantage in the production of good X relative to Country B,

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If Country A has a comparative advantage in the production of good X relative to Country B,

If Country A has a comparative advantage in the production of good X relative to Country B,

▸ then Country A also has an absolute advantage in the production of some good other than X.

▸ then the opportunity cost of producing X in Country A is lower than in Country B.

▸ then the opportunity cost of producing X in Country A is higher than in Country B.

▸ then Country A also has an absolute advantage in the production of this good.

▸ We do not have enough information to say anything about relative opportunity costs.

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Microeconomics

Edition: 17^th

Author: Ragan

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lampard

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triciababy1 Author

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Brilliant ツ

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This helped my grade so much Perfect

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You make an excellent tutor!

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