Comparative advantage refers to:
A)the ability of an individual to specialize and produce a greater amount of some good than another individual.
B)the number of units of a good given up in order to acquire something.
C)the ability of an individual to produce a good at a lower opportunity cost than some other individual can.
D)the amount of labor a particular individual needs to produce a fixed amount of capital goods.
E)the ability of an individual to produce a good using fewer labor hours than other individuals.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of an individual or a country to produce a good or service at a lower opportunity cost than another individual or country. This means that they can produce a good or service at a lower cost, taking into account the cost of producing other goods or services they would have to forego producing instead.

Comparative Advantage Refers To