Answer to Question #134293 in Macroeconomics for lesego

Question

Kenya has a comparative advantage over Uganda in the production of sugar if it:
(1) Is able to produce sugar at a faster rate than Uganda.
(2) Produces sugar at a lower opportunity cost than Uganda.
(3) Has the absolute advantage in sugar production.
(4) Specialises in sugar production

Answer 1

when a country is said to have a comparative advantage in production of a certain good, this means ,that particular country can produce that good at lower opportunity cost that its partner.

so from the above statement, the right answer should be (2) Produces sugar at a lower opportunity cost than Uganda.