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30 June, 13:37

How does a country determine whether it has a comparative advantage in the production of certain goods?

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  1. 30 June, 16:18
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    Comparative Advantage: A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.

    For determining comparative advantage, countries compare their good's opportunity cost with the other country's goods opportunity cost.
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