A situation in which a person or a country can produce one good at a lower opportunity cost than another person or country is known as

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The situation described is known as comparative advantage. This means that even if one person or country can produce both goods more efficiently (i.e. has an absolute advantage), there is still a benefit to specializing in producing the good with the lower opportunity cost and trading with others for the other good. This results in both parties being able to consume more of both goods than if they tried to produce both themselves.

A Situation in Which a Person or a Country Can