The theory of comparative advantage states that... - JAMB Economics 2003 Question
The theory of comparative advantage states that a commodity should be produced in that nation where the
A
Absolute cost is least
B
Absolute money cost is least
C
Opportunity cost is least
D
Production possibility curve increases
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Correct Option: C
The theory of comparative advantage suggests that a country should specialize in producing goods and services for which it has the lowest opportunity cost. Opportunity cost refers to the value of the next best alternative that is forgone when a choice is made.
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