Answer:
lowest opportunity cost in the production of the good.
Explanation:
An individual has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.
For example, country A produces 100kg of buns and 50kg of rice. Country B produces 50kg of buns and 100kg of rice.
for country A,
opportunity cost of producing buns = 50/100 = 0.5
opportunity cost of producing rice = 100/50 = 2
for country B,
opportunity cost of producing buns = 50/100 = 0.5
opportunity cost of producing beans = 100/50 = 2
Country A has a comparative advantage in the production of buns and country B has a comparative advantage in the production of rice
