Question

Germany and the U.S. both produce cars and airplanes. The U.S. has the comparative advantage in producing airplanes if a. the opportunity cost of producing an airplane is lower for Germany. b. Germany requires fewer resources than the U.S. to produce an airplane. c. the opportunity cost of producing an airplane is lower for the U.S. d. the U.S. has an absolute advantage over Germany in producing airplanes.

Answer 1

Option C

Step-by-step explanation:

In simple words, The capacity of a country to provide a certain item or service at a lower opportunity expense than its trade rivals is known as comparative advantages. A comparative advantages allows a firm to sell goods as well as services at a cheaper cost than its rivals while maintaining higher profit margins.

Thus, from the above we can conclude that the correct option is C.