Final answer:
A country with a comparative advantage can produce a good at a relatively lower cost than another country. This specialization and trade lead to increased global production and consumption. The correct option in the scenario given is C.
Step-by-step explanation:
In the context of international trade, the scenario that best describes a country with a comparative advantage in producing a good over another country is when the country can produce that good at a relatively lower cost. This concept is different from absolute advantage, which occurs when a country can produce a good using fewer resources compared to others.
Comparative advantage occurs when a country can produce a good at a lower opportunity cost than another country, meaning it sacrifices less in terms of other goods to produce it. Countries stand to gain from trade by specializing in goods for which they hold a comparative advantage and trading them for goods that other countries are more efficiently producing.
Therefore, the correct option from the scenarios given is C: The country can produce that good at a relatively lower cost. Specializing based on comparative advantage and engaging in international trade can ultimately increase global production and consumption levels, leading to a rise in overall economic welfare.