Comparative advantage
A)is also known as relative efficiency.
B)can lead to trade even in the face of absolute efficiency.
C)exists when one party can produce a good or service at a lower opportunity cost than another party.
D)all of the options

Question

Quizplus · Accepted Answer

All of the options are correct. Comparative advantage refers to the ability of one party to produce a good or service at a lower opportunity cost than another party, and it can lead to trade even when one party is absolutely more efficient than the other. It is also known as relative efficiency, as it compares the efficiency of one party to another.

Comparative Advantage