Answer:
Opportunity cost is the probable benefit that an individual misses out on when choosing a particular option over an alternative. In the case of comparative advantage, the opportunity cost for one company is lesser than that of another. The company with the lower opportunity cost offers the least potential benefit which was lost leading to a comparative advantage.
In business and economics, the production possibility frontier (PPF)—also called the production possibility curve (PPC) or the transformation curve—visualizes the different possible quantities of two different goods that may be produced when there is limited availability of a certain resource that both need to be produced.
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