When a country is not able to produce a good more efficiently than other nations, but produces the good more efficiently than it

Question

marusya05 [52]

3 years ago

11

When a country is not able to produce a good more efficiently than other nations, but produces the good more efficiently than it

does any other good, it is said to have a(n) ________.

Business

1 answer:

nikitadnepr [17] · Answer 1 · 2022-03-16T15:46:41+03:00

Answer:

The answer is comparative advantage.

Explanation:

Comparative advantage is when a country is able to produce goods and services at a lower opportunity cost than its trading partners. That means a labour can produce more goods per hour than a labour in its trading partner's country.

A country with a comparative advantage will be able to charge lower price for what she is specialising on.