Comparative advantage is the ability to produce a specific good or service at:
A)lower opportunity cost
B)higher opportunity cost
C)lower tax threshold
D)higher tax threshold

Question

Quizplus · Accepted Answer

Comparative advantage is the ability to produce a specific good or service at a lower opportunity cost.
Key Takeaway: When a manufacturer or a producer is able to generate a specific good or service at a lower opportunity cost than another producer, this is referred to as comparative advantage. Comparative advantage, thus, is the ability to produce a good or service efficiently given all the other goods or services that could be produced.

Comparative Advantage Is the Ability to Produce a Specific Good