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23 October, 04:59

The United States has a comparative advantage in producing airplanes:

A. if it can produce them at a lower opportunity cost than can other nations.

B. it can produce a larger quantity than can other nations.

C. it can produce them at a lower dollar cost than can other nations.

D. it has a larger quantity of skilled

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Answers (1)
  1. 23 October, 08:54
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    The answer is A.

    Explanation:

    Comparative advantage is when a country produces a good or service at a lower opportunity cost than other country (its trading partner).

    A comparative advantage gives a country the ability to sell goods and services at a lower price than its trading partner.

    For example, if Country A opportunity cost to produce cloth is 2 while the opportunity cost to produce the same quantity of cloth for Country B is 5. The country A has a comparative advantage over country B in production of cloth
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