The Principle of Comparative Advantage Says That

Multiple Choice

The principle of comparative advantage says that

A) every individual should specialize in producing that good for which the absolute cost is the smallest
B) the output of society as a whole will be the greatest if every individual specializes in producing that commodity for which his opportunity cost is the smallest
C) monopoly power is gained by specializing in a large market and reducing costs
D) monopoly power is gained by specializing in a small market and producing a differentiated product
E) your financial investments should be "compared" in a common fashion to determine your maximum advantage