Question

The theory of comparative advantage shows that the gains from international trade do not just result from the absolute advantage of producing at lower cost, but also from pursuing comparative advantage and producing at a lower ________________. Group of answer choices

Answer 1

Opportunity cost

Step-by-step explanation:

The theory of comparative advantage represent that if there is any benefit from the international trade so it does not only show the absolute advantage at lesser cost but it also represent the comparative advantage and generating at a lesser opportunity cost as the theory of comparative advantage says that the product and services should be produced at lower opportunity cost