Question

What distinguishes comparative advantage from absolute advantage in production?(1 point) Responses A country has comparative advantage in production when its opportunity costs of producing a good are lower than another country's. A country has comparative advantage in production when its opportunity costs of producing a good are lower than another country's. A country has comparative advantage in production when it requires more total inputs than does another country to produce the same output. A country has comparative advantage in production when it requires more total inputs than does another country to produce the same output. A country has comparative advantage in production when it requires fewer total inputs than does another country to produce the same output. A country has comparative advantage in production when it requires fewer total inputs than does another country to produce the same output. A country has comparative advantage in production when its opportunity costs of producing a good are higher than another country's.

Answer 1

A country has comparative advantage in production when its opportunity costs of producing a good are lower than another country's. This means that a country can produce a good at a lower opportunity cost, or with fewer resources, compared to another country. Absolute advantage, on the other hand, refers to a country's ability to produce a good more efficiently or with fewer resources compared to another country, without considering opportunity costs.