If someone can produce a good at a lower opportunity cost, she ________ in producing that good.
A) has a comparative advantage
B) has an absolute advantage
C) experiences no diminishing returns
D) experiences no marginal costs

Question

Quizplus · Accepted Answer

Comparative advantage occurs when someone can produce a good at a lower opportunity cost than others. It's not about producing the most goods, but about the relative efficiency in production compared to other goods.

If Someone Can Produce a Good at a Lower Opportunity