"Comparative advantage" is defined as a situation in which one person can produce
A)a good for a lower opportunity cost than another person.
B)more of a good than another person.
C)a good for a lower dollar cost than another person.
D)more of all goods than another person.
E)all goods for lower opportunity costs than another person.

Question

Quizplus · Accepted Answer

Comparative advantage is based on opportunity cost, which measures the trade-off of producing one good in terms of the next best alternative that is given up. If one person can produce a good at a lower opportunity cost than another person, they have a comparative advantage in producing that good.

"Comparative Advantage" Is Defined as a Situation in Which One