A comparative advantage is the ability of a country to produce a particular good or service at a lower ____________ than another country. a. production cost b. opportunity cost c. absolute advantage d. manufacturing advantage
The correct answer is b. Opportunity cost.
Comparative advantage is when the country produces goods and services for a lower opportunity cost than other countries. The opportunity cost measures a trade off, such that a country with comparative advantage makes the trade off worth it. Therefore, the advantage of buying their goods or service outweighs the disadvantages.