...the former producer has COMPARATIVE ADVANTAGE for producing the good.
Comparative Advantage is a theory opined by David Ricardo that aims to analyze what a country should produce to harness their resources efficiently.
The theory is simple, a country must focus on producing that good which it has a lower Opportunity Cost in producing. This theory has been applied to businesses as well because if businesses were to sell goods they had an opportunity cost advantage producing, they would sell at cheaper prices.
