What is the comparative advantage?

I. The gain from selling a product for more than it costs to produce that product.

II. The gain from consuming a product whose benefit is greater than its cost.

III. The ability of trading partners to produce goods or services at a lower opportunity cost than others.

IV. The ability to produce more of a good or service than competitors using the same amount of resources.

V. The ability to use all available resources to produce output.

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Deanna HettingerLv2

20 Jun 2019

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Related questions

The primary difference between absolute and comparative advantage is:

(i) absolute advantage refers to the ability to produce more of a good or service using the same amount of resources and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost.

(ii) absolute advantage refers to the ability to produce a good or service at a lower opportunity cost and comparative advantage refers to the ability to produce more of a good or service using the same amount of resources.

(iii) absolute advantage is a concept that was utilized in communist countries and comparative advantage is a capitalist idea.

(iv) absolute advantage can never change while comparative advantage depends on the relative cost of a good's resources.

olivesquirrel267

The primary difference between absolute and comparative advantage is

a. Absolute advantage refers to the ability to produce more of a good or service using the same amount of resources, and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost

b. Absolute advantage doesn't change as time passes, while comparative advantage does

c. Absolute advantage is a concept that was utilized in communist countries, and comparative advantage is a capitalist idea

d. Absolute advantage refers to the ability to produce a good or service at a lower opportunity cost, and comparative advantage refers to the ability to produce more of a good or service using the same amount of resources

peachcrow879

A producer with an absolute advantage has the ability to produce a good or service at

A: A lower opportunity cost then any competitor can.
B: a faster rate than any competitor can.
C: a greater volume than any competitor can
D: a lower cost than any competitor can.