Which of the following statements is true? a. A country cannot have a comparative advantage in producing a certain item if it incurs an increasing opportunity cost in producing the item. b. A country cannot have a comparative advantage in producing a particular good unless it first has an absolute advantage in producing that good. c. All countries can gain from trade if they all specialize in production according to comparative advantage. d. Comparative advantage in producing a certain item arises from being the first country to manufacture that item.
Added by Patricia W.
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This means that a country can specialize in producing the goods or services in which it has a comparative advantage and trade with other countries to maximize overall production and consumption. Show more…
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