Which of the following is true of comparative advantage?

Question

Which of the following is true of comparative advantage?

A.It states that individuals, firms, regions, or nations can gain by specializing in the production of goods that they produce at a higher opportunity cost.

B. It states that individuals, firms, regions, or nations can gain by selling goods at a higher price.

C. It states that individuals, firms, regions, or nations can gain by specializing in the production of goods that they produce at a lower opportunity cost.

D. It states that individuals, firms, regions, or nations can produce all goods with the available resources.

Answer 1

Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. 

The only possible answer is C