Multiple Choice
Which of the following statements is true?
A) An economic agent can have a comparative advantage in the production of all goods.
B) The agent with the higher opportunity cost of producing a good has the comparative advantage in producing that good.
C) There are mutually beneficial gains from trade if opportunity costs differ.
D) An economic agent who has the absolute advantage in producing a good also has the comparative advantage in producing that good.
Correct Answer:

Verified
Correct Answer:
Verified
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