Comparative advantage is the ability, compared with another producer
A) to produce more of a product with the same resources.
B) to use fewer inputs to produce the same amount of a product.
C) to produce a higher-quality product with fewer resources.
D) to produce an additional unit of a product at lower opportunity cost.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability of a producer to produce a particular good or service at a lower opportunity cost than another producer. This means that a producer can produce an additional unit of a product at a lower opportunity cost than another producer, giving them a comparative advantage in producing that product.

Comparative Advantage Is the Ability, Compared with Another Producer