Comparative advantage is defined as
A) the ability to produce more output of one good relative to another good than another country can.
B) the ability to produce more output from given inputs of resources than others can.
C) the ability to use more input of resources than others can.
D) having a lower average fixed cost in the production of a good than does someone else.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a particular good at a lower opportunity cost compared to another country, not necessarily to produce more of it with given resources or using more inputs. It's about being relatively more efficient in producing one good over another compared to another country.

Comparative Advantage Is Defined as