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Which of the Following Statements Is True

Question 179

Multiple Choice

Which of the following statements is true?


A) When two firms have the same opportunity cost of producing two goods, each firm will always have a comparative advantage in the production of both goods.
B) When two firms have different opportunity costs of producing two goods, each firm will always have a comparative advantage in the production of one of the goods.
C) The firm that has a lower opportunity cost of producing a good is said to have a comparative disadvantage in the production of that good.
D) The firm that faces a lower opportunity cost of producing a good is said to have an absolute disadvantage in the production of that good.

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