Comparative advantage is determined by:

CA Foundation · Business Economics · MTP · June 2024
Comparative advantage is determined by:
(A) A. the amount of resources needed to produce a good
(B) B. the money cost of producing any good
(C) C. The opportunity cost of producing any good
(D) D. Absolute advantage and production possibilities combined.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. The opportunity cost of producing any good

Topics: International Trade

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