Question

The ability to produce more output at a lower opportunity cost than other producers is A. absolute advantage. B. comparative advantage. C. production advantage. D. relative advantage.

Answer 1

Answer:

The answer is: B) comparative advantage

Explanation:

Comparative advantages occur when an organization (or country) is able to produce a good or service for a lower opportunity cost than other organizations (or countries).

Comparative advantages allow products and services to be sold at a lower price than its competitors and/or increase sales margins.