A country has a comparative advantage in international trade when
A. Firms in the country have a lower cost of production because of natural resources.
B. It has an absolute advantage with respect to at least one input to production.
C. Firms in the country have a lower cost of production because of transportation and other geographic factors.
D. It produces whatever it can produce most efficiently.
Answer:D
A country has a comparative advantage in international trade when
A. Firms in the country have a lower cost of production because of natural resources. B. It has an absolute advantage with respect to at least one input to production. C. Firms in the country have a lower cost of production because of transportation and other geographic factors. D. It produces whatever it can produce most efficiently.