Question

Which of the following is TRUE about comparative​ advantage? A. Comparative advantage explains trade within nations and among nations. B. Comparative advantage explains trade among​ nations, but not within nations. C. Comparative advantage has nothing to do with trade among​ nations; it only is concerned with specialization within a firm. D. Comparative advantage explains trade within​ nations, but not among nations.

Answer 1

Answer: (A.) Comparative advantage explains trade within nations and among nations.

Step-by-step explanation:

Comparative advantage refers to an economy's power to produce commodities and services at a lower opportunity cost than their trade partners. A comparative advantage gives a institution the power to sell goods and services at a lower price than its competitors.