Question

Identify the choice that best completes the statement or answers the question. The law of comparative advantage states that a nation is better off when it produces goods and services for which it has the comparative advantage. How is a comparative advantage obtained

Answer 1

Answer:

By producing a product with a lower opportunity cost

Explanation:

Given that the law of comparative advantage states that a nation is better off when it produces goods and services for which it has a comparative advantage.

To obtain a comparative advantage means "By producing a product with a lower opportunity cost."

This implies that while many nations can produce the same products, a particular nation will have the comparative advantage over other nations if its opportunity cost of producing that specific product is quite lower compared to other nations that ks capable of producing the same product.