The ability to produce a good or service at a lower opportunity cost than other producers is
A) absolute advantage.
B) comparative advantage.
C) opportunity advantage.
D) special advantage.

Question

Quizplus · Accepted Answer

The ability to produce a good or service at a lower opportunity cost than other producers is known as comparative advantage. It refers to the ability to produce a good or service at a lower opportunity cost than another producer. Absolute advantage, on the other hand, refers to the ability to produce more of a good or service with the same amount of resources. Opportunity advantage and special advantage are not economic terms.

The Ability to Produce a Good or Service at a Lower