A comparative advantage results from something that the firm does better than any of its competitors.

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A comparative advantage is the ability of a firm to produce goods or services at a lower opportunity cost than its competitors. This can result from having superior technology, access to low-cost inputs, better skills or knowledge, or economies of scale. Therefore, a firm that does something better than any of its competitors can have a comparative advantage in that area.

A Comparative Advantage Results from Something That the Firm Does