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Which term describes a situation in which one country can produce a product

at a lower opportunity cost than another country?
A. Deficit advantage
B. Comparative advantage
C. Absolute advantage
D. Surplus advantage

User Jfmg
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2 Answers

7 votes

Answer:

B. Comparative advantage

Step-by-step explanation:

Just got it right on my quiz!

User Thentangler
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2 votes

Answer:

B. Comparative advantage

Step-by-step explanation:

Comparative advantage is when a country or company can produce goods using fewer resources compared to its rivals. It means the product will cost much less when produced by the country with a comparative advantage.

A comparative advantage means that a country will produce more output of a product when using similar inputs as rivals. The country or company can, therefore, avail the product in the market at a lower cost. Other countries stand to gain when importing products from countries with a comparative advantage than when they manufacture.

User Ahmad Alaa
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