Question

The United States has a comparative advantage in producing airplanes:

A. if it can produce them at a lower opportunity cost than can other nations.
B. it can produce a larger quantity than can other nations.
C. it can produce them at a lower dollar cost than can other nations.
D. it has a larger quantity of skilled

Answer 1

The answer is A.

Step-by-step explanation:

Comparative advantage is when a country produces a good or service at a lower opportunity cost than other country(its trading partner).

A comparative advantage gives a country the ability to sell goods and services at a lower price than its trading partner.

For example, if Country A opportunity cost to produce cloth is 2 while the opportunity cost to produce the same quantity of cloth for Country B is 5. The country A has a comparative advantage over country B in production of cloth