The ability of an individual,firm,or country to produce a certain good at a lower opportunity cost than other producers is referred to as ________.

Question

Quizplus · Accepted Answer

The given definition refers to comparative advantage, which is the basis of trade between nations. It means that a producer can produce a certain good at a lower opportunity cost than other producers. Option B, absolute advantage, refers to a situation where a producer can produce a certain good with fewer resources than another producer. Marginal advantage (option A) and cardinal advantage (option C) are not commonly used terms in economics.

The Ability of an Individual,firm,or Country to Produce a Certain