Comparative advantage indicates that:

Question

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Comparative advantage means that a nation can produce a good at a lower opportunity cost than its trading partner. This means that even if a country is less efficient than another country in producing all goods, it can still specialize in producing the good it is relatively better at producing, and then trade with the other country. This leads to mutual benefits and overall economic growth, as opposed to reducing joint output (A) or pulling down wages (C).

Comparative Advantage Indicates That