The ability to produce a good at lower opportunity costs than another producer is known as
A) comparative advantage.
B) marginal cost production.
C) economies of scale.
D) absolute advantage.

Question

Quizplus · Accepted Answer

The ability to produce a good at lower opportunity costs than another producer is known as comparative advantage. This means that the producer can produce a good more efficiently than the other producer, which gives them a competitive advantage in the market. Marginal cost production refers to the cost of producing one additional unit of a good, while economies of scale refer to the cost advantages of producing a larger quantity of a good. Absolute advantage refers to the ability to produce a good more efficiently than any other producer.

The Ability to Produce a Good at Lower Opportunity Costs