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

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of an individual, firm, or country to produce a particular good or service at a lower opportunity cost than its competitors. This means that they give up less of other goods or services in order to produce a specific good, compared to their competitors. Therefore, choice (D), which refers to producing a good at a lower opportunity cost than someone else, is the best option.

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