A person with a lower opportunity cost of producing a good than another person

Question

Quizplus · Accepted Answer

A person with a lower opportunity cost of producing a good than another person has a comparative advantage in that good. This means that they can produce that good at a lower cost (in terms of sacrificed production of another good) than the other person. Therefore, it is beneficial for them to specialize in producing that good and trade with the other person who has a lower opportunity cost in producing a different good.

A Person with a Lower Opportunity Cost of Producing a Good