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meriva
3 years ago
12

Which economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its co

mpetitors? A. opportunity cost B. comparative advantage C. inflation D. consumer price index (CPI) E. gross domestic product (GDP)
History
2 answers:
Vanyuwa [196]3 years ago
6 0

Answer:

B. comparative advantage

Explanation:

Reika [66]3 years ago
3 0

The correct answer is B.

Comparative advantage is an economic term that<em> refers to the process of producing goods and services at a lower cost than the competition.</em>

A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and thus obtain stronger sales margins.

Comparative advantage suggests that countries would trade with each other, exporting the goods that they have a relative advantage in productivity.

This term is attributed to the English economist David Ricardo in 1817.

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