Question

Which of the following statements is true?a. A country cannot have comparative advantage in producing a certain item if it incurs an increasing opportunity cost in producing the item.b. A country cannot have a comparative advantage in producing a particular good unless it first has an absolute advantage in producing that good.c. All countries can gain from trade if they all specialize in production according to comparative advantage.d. Comparative advantage in producing a certain item arises from being the first country to manufacture that item.

Answer 1

Answer:

. All countries can gain from trade if they all specialize in production according to comparative advantage

Explanation:

Comparative advantage is when a country produces a product at a lower opportunity cost when compared with its trading partners.

Absolute advantage is when a country produces more quantities of goods and services than its trading partners.

A country can still have comparative advantage in production if opportunity cost is increasing once it's opportunity cost doesn't become greater than that of its trading partners.

A country can have comparative advantage without having absolute advantage.

I hope my answer helps you.