The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n)
A) market advantage.
B) comparative advantage.
C) absolute advantage.
D) specialization advantage.

Question

Quizplus · Accepted Answer

The statement describes the concept of absolute advantage, where one entity can produce a good at a lower cost than another. Comparative advantage, on the other hand, refers to the ability to produce a good at a lower opportunity cost. Market advantage and specialization advantage are not commonly used economic terms.

The Ability of One Person or Nation to Produce a Good