The ability to produce at a lower opportunity cost than someone else is referred to as:
A)absolute advantage.
B)comparative advantage.
C)absolute superiority.
D)competitive disadvantage.

Question

The ability to produce at a lower opportunity cost than someone else is referred to as:
A)​absolute advantage.
B)​comparative advantage.
C)​absolute superiority.
D)​competitive disadvantage.

Quizplus · Accepted Answer

The ability to produce at a lower opportunity cost than someone else is referred to as comparative advantage. Absolute advantage refers to the ability to produce more of a good or service using the same amount of resources. Absolute superiority and competitive disadvantage are not relevant terms in this context.

The Ability to Produce at a Lower Opportunity Cost Than