Comparative advantage is
A) the ability to produce more output from given inputs than another producer can.
B) the ability to produce a good at a lower opportunity cost than other producers.
C) the ability to produce more output of all goods than anyone else can.
D) the ability to produce all goods at lower costs than anyone else can.

Question

Quizplus · Accepted Answer

Comparative advantage means being able to produce a good at a lower opportunity cost than others. It is not about producing more output or producing all goods at lower costs. Therefore, option B is the correct answer.

Comparative Advantage Is