What is the term for the ability to produce at a lower opportunity cost than someone else?
A) competitive disadvantage
B) absolute advantage
C) absolute superiority
D) comparative advantage

Question

Quizplus · Accepted Answer

The term for the ability to produce at a lower opportunity cost than someone else is comparative advantage. Absolute advantage (B) refers to the ability to produce more of a good or service than someone else using the same amount of resources. Competitive disadvantage (A) refers to being at a disadvantage in relation to competitors. Absolute superiority (C) is not a commonly used economic term.

What Is the Term for the Ability to Produce at a Lower