What is it called when a country can produce an item at a lower opportunity cost?
A. absolute advantage
B. efficient advantage
C. comparative advantage
D. consistent advantage
Comparative advantage is the ability of a firm, an individual or country to produce goods and services even at the lower opportunity cost than the other producers.
Even if the one countries ability is better than the other to produce goods and service at lower opportunity then also both countries will gain by trading with each other as long as they both have different relative efficiency.
