If a nation's labor can produce more of a good compared to labor in another nation, then we say
that the ﬁrst nation has a comparative advantage in producing that good.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another. It's not about producing more of the good, but rather producing it more efficiently relative to other goods.

If a Nation's Labor Can Produce More of a Good