Comparative advantage exists when a person or a country can produce a good or service at a lower _____ than others.

Question

Quizplus · Accepted Answer

Comparative advantage is based on the concept of opportunity cost. Opportunity cost refers to the cost of giving up the opportunity to produce an alternative good or service. If one person or country has a lower opportunity cost in producing a certain good or service than another person or country, then they have a comparative advantage in producing that good or service. This means they can produce it at a lower cost, either in terms of using fewer resources or in terms of giving up less of the opportunity to produce other goods or services.

Comparative Advantage Exists When a Person or a Country Can