QUESTION IMAGE
Question
comparative advantage is:
select one:
a. lower opportunity cost
b. lower wages
c. lower taxes
d. government subsidies
Comparative advantage is defined by the ability to produce a good or service at a lower opportunity cost than another producer. Opportunity cost refers to the value of the next best alternative forgone. The other options (lower wages, lower taxes, government subsidies) relate to factors that might affect production costs but are not the core definition of comparative advantage.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
a. Lower opportunity cost