If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?
Answer Details
If Nigeria has a comparative advantage over Ghana in producing cocoa, it means that Nigeria can produce cocoa at a lower opportunity cost than Ghana. In other words, Nigeria can produce cocoa more efficiently than Ghana, and it has a lower cost of producing cocoa.
Comparative advantage is an economic concept that explains how different countries can benefit from specializing in the production of goods and services that they can produce more efficiently than others. This allows them to trade with other countries and increase their overall economic welfare.
In this case, if Nigeria has a comparative advantage over Ghana in producing cocoa, it means that Nigeria can produce cocoa at a lower cost than Ghana. This could be because Nigeria has better technology, more skilled labor, or better access to raw materials needed for cocoa production. As a result, Nigeria could produce cocoa at a lower cost than Ghana, making it more competitive in the global market.
Therefore, the correct answer to the question is: Nigeria produces cocoa more efficiently than Ghana and has a lower cost of producing cocoa, giving it a comparative advantage over Ghana.