The correct option is B. A country can produce beach balls at a lower opportunity cost than any other country. It has a comparative advantage in producing beach balls.
The capacity of an actor to create an item or a service for less money than a rival.
What is a comparative advantage in economics?
Developed by British economist David Ricardo in the 19th century, comparative advantage is an economic theory that links differences in relative opportunity costs, or the price paid for providing a given item, between nations, to the causes and benefits of international commerce.
If someone can create something for less money than anyone else, they have a comparative advantage. Comparative advantage is different from superiority in a given field.
The best choice is B. A nation can create beach balls for less money than any other nation. In terms of making beach balls, it has a comparative advantage.
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