Comparative advantage refers to the ability to produce goods at a lower opportunity cost, and therefore more efficiently, than a competitor.

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Comparative advantage is based on producing goods or services at a lower opportunity cost, meaning that fewer resources are required to produce the same quantity, compared to a competitor. This is a key concept in international trade, where countries can specialize in producing goods where they have a comparative advantage, and then trade with other countries to obtain other goods that they cannot produce as efficiently.

Comparative Advantage Refers to the Ability to Produce Goods at a Lower