When a producer has a comparative advantage at producing a good, it means the producer:
A) can produce more of that good than others with the same number of workers.
B) has the ability to produce the good at a lower opportunity cost than others.
C) has no reason to trade with others.
D) is efficient in production.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability to produce a good or service at a lower opportunity cost than others. This means that the producer can produce the good or service with fewer resources, allowing them to produce more goods overall or to specialize in producing that particular good or service. It does not necessarily mean that the producer is more efficient in production or has no reason to trade with others.

When a Producer Has a Comparative Advantage at Producing a Good