Answer:
The correct answer is option d.
Explanation:
The theory of comparative advantage was given by David Ricardo. It states that a country should trade the good that it specializes in. A country is said to be specialized in the production of a good that it can produce at a comparatively lower opportunity cost.
Opportunity cost is the cost of sacrificing the second-best alternative.
The theory of absolute advantage, on the other hand, stated that a country should produce and trade a good that it can produce at a lower cost.
Answer:
d. a lower opportunity cost than that of other countries
Explanation:
comparative advantage means the benefit you get for an exchange of something. In this case scenario, the country should produce something that would have a lower opportunity cost because then they would be losing less. If it were to have a higher opportunity cost, that would mean the country is loosing more than it is gaining, and that is certainly what it does not aim.
