If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?

1. Analyze the question The question asks what it means when Nigeria has a comparative advantage over Ghana in producing cocoa.

2. Explain the concept Comparative advantage is the ability of a country to produce a good at a lower opportunity cost than another country. It is about relative efficiency, meaning the country gives up fewer other goods to produce one more unit of cocoa. It is not about total output.

This is different from absolute advantage, where a country produces more of a good using the same resources.

3. Step-by-step solution

• Option B (same level of production): comparative advantage says nothing about equal output. Wrong.
• Option C (Ghana produces more): this has no link to Nigeria's advantage. Wrong.
• Option D (Nigeria produces more): this describes total output, closer to absolute advantage. A country can produce a larger quantity without having a lower opportunity cost. Wrong.
• Option A (Nigeria produces cocoa more cheaply): lower cost of production, in the sense of lower opportunity cost, is the meaning of comparative advantage. Correct.

4. Answer The correct option is A: Nigeria produces cocoa more cheaply than Ghana.

5. Exam tip Link comparative = cost, and absolute = quantity or efficiency. When you see "comparative advantage", think "lower opportunity cost", which is the same as "cheaper relative to other goods". Options that talk about producing more usually point to absolute advantage, so they are traps.