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    Question

    Comparative advantage is based on 

    A dollar price Correct Answer Incorrect Answer
    B labor cost Correct Answer Incorrect Answer
    C rental cost Correct Answer Incorrect Answer
    D capital cost Correct Answer Incorrect Answer
    E opportunity cost Correct Answer Incorrect Answer

    Solution

    Opportunity cost is the loss of other alternatives when one alternative is chosen. Comparative advantage theory is based on the opportunity cost theory.

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