The law of comparative advantage states that the person who should produce the good.

Lower opportunity cost

Explanation:

Comparative advantage:

A country or a person has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity is lower than the other country or person.

Suppose the opportunity cost of producing beer in terms of wine is 0.5 wine for country A and the opportunity cost of producing beer in terms of wine is 0.3 wine for country B.

Therefore, from the above information we can conclude that country B has a comparative advantage in producing beer because the opportunity cost of producing beer is lower in Country B than in Country A.

answer; break-even analysis;