Consider the gains from trade.What is the best definition of "comparative advantage"?

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of one region (or country) to produce a commodity at a lower opportunity cost than another region (or country). This means that the region with comparative advantage can produce a good at a lower cost (in terms of other goods that could be produced) and therefore has a lower opportunity cost of producing that good. This creates gains from trade as countries can specialize in producing the goods they have comparative advantage in and trade with other countries for goods they do not have comparative advantage in, increasing overall efficiency and welfare.

Consider the Gains from Trade