The ability to produce a good or service at a lower opportunity cost than other producers is
A) absolute advantage.
B) the quota system.
C) intellectual property.
D) comparative advantage.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability to produce a good or service at a lower opportunity cost than other producers. This means that a producer can produce a good at a lower cost, either by using fewer resources or by using their resources more efficiently, than other producers. This allows the producer to specialize in the production of that good and trade with other producers who have a comparative advantage in producing other goods. This leads to a more efficient allocation of resources and increased welfare for all parties involved.

The Ability to Produce a Good or Service at a Lower