A person has a comparative advantage in an activity whenever he or she
A) can do everything better than anyone else.
B) can do the activity in less time than anyone else.
C) can perform the activity at a lower opportunity cost than can anyone else.
D) has an absolute advantage in the activity.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability of a person, firm, or country to produce a particular good or service at a lower opportunity cost than another person, firm, or country. This means that the individual can produce a good or service at a lower cost (in terms of resources and time) than others. It is not necessary for the individual to be the best or to have an absolute advantage in the activity. So, option C is the correct answer.

A Person Has a Comparative Advantage in an Activity Whenever