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

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability to produce a good or service at a lower opportunity cost than other producers. This means that even if one producer is not better in all aspects of production, they can still have a comparative advantage in producing a particular good or service. The other options (absolute advantage, implicit advantage, and marginal advantage) are not synonymous with the concept of comparative advantage.

The Ability to Produce a Good or Service at a Lower