The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n):

Question

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The ability to produce a good at a lower opportunity cost is referred to as comparative advantage. This is because it is determined by comparing the opportunity cost of producing a good between two nations or individuals rather than looking at the absolute cost of production. Options A and B are incorrect as they do not accurately describe the concept being discussed, while Option C refers to a different type of advantage where one person or nation can produce a good using the same amount of resources as another but in less time.

The Ability of One Person or Nation to Produce a Good