A person has a comparative advantage in an activity if that person can
A) produce more goods in a given amount of time than another person.
B) perform the activity at a lower opportunity cost than anyone else.
C) perform that activity at a higher opportunity cost than anyone else.
D) produce fewer goods in a given amount of time than another person.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than another individual, firm or country. Opportunity cost is the cost of a forgone alternative, in terms of the next best alternative foregone. Therefore, if a person can perform an activity at a lower opportunity cost than anyone else, they have a comparative advantage in that activity.

A Person Has a Comparative Advantage in an Activity If