Comparative advantage means:
A)Relative efficiencies in market research
B)Relative efficiencies in distributing products
C)Relative efficiencies in producing different products
D)Relative advantages in product development

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of one country or entity to produce a particular good or service more efficiently than another country or entity, given the same amount of resources. This means that country A may be able to produce product X more efficiently than country B, while country B may be able to produce product Y more efficiently than country A. Therefore, countries can specialize in producing the goods or services in which they have a comparative advantage and trade with other countries to maximize overall efficiency and increase economic welfare.

Comparative Advantage Means