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In the theory of comparative advantage, a good should be produced in that nation where:
A. the production possibilities line lies further to the right than the trading possibilities line.
B. its cost is least in terms of alternative goods that might otherwise be produced.
C. its absolute cost in terms of real resources used is least.
D. its absolute money cost of production is least.

Sagot :

According to the comparative advantage hypothesis, a good should be produced in the country where it is least expensive compared to alternative items that may be produced instead.

In an economic model, agents who can produce a particular good at a lower relative opportunity cost or autarky price—that is, at a lower relative marginal cost before trade—have a competitive advantage over rivals. The word "comparative advantage" is used to describe the economic reality of employment advantages associated to trade for people, companies, or nations that arise from differences in their factor endowments or technological advances. David Ricardo developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even though their workers are more efficient at manufacturing every good than those in other countries. 

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