A country has a comparative advantage over another country when it can _____ .

A country possesses a comparative advantage when it can produce a good at a lower opportunity cost compared to another country. This concept is fundamental in international trade theory and emphasizes that even if one country is more efficient than another in producing all goods, specialization based on comparative advantage can lead to overall greater efficiency and production levels in the global economy.

By focusing on the production of goods that they can manufacture more efficiently (that is, at a lower opportunity cost), countries can trade and benefit from each other's strengths. This results in a more effective allocation of resources, allowing countries to obtain goods at a lower cost than if they attempted to produce everything domestically. The emphasis on opportunity cost highlights the significance of trade-offs in economics, demonstrating how countries can maximize their output and economic welfare by specializing in what they do best.

In contrast, producing more goods overall does not take into account the costs associated with production, nor does it reflect the efficiency of resource use. Controlling prices is more related to market structures and government policies rather than inherent efficiency in production. Lastly, exporting more than importing refers to a trade surplus and does not necessarily relate to the concept of comparative advantage, possibly leading a country into inefficiencies if it limits its focus on opportunity cost. Thus, the correct