The ________________________ is the ability to produce a good or service at a lower opportunity cost than another producer.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability to produce a good or service at a lower opportunity cost than another producer, which means that a producer can produce a good at a lower cost than their competitor. This concept is essential in international trade where countries specialize in producing the goods they have a comparative advantage in and then trade for other goods they don't have a comparative advantage in.

The ________________________ Is the Ability to Produce a Good or Service