Question

define comparative advantage

Answer 1

Comparative advantage is an economic concept that indicates the ability of a country or a producer to produce a said good or service at lower opportunity cost relative to other countries or producers.

In other words, comparative advantage implies that a country or producer can produce a good or service by sacrificing lower amount of other goods and services in comparison to other countries or producers.

Comparative advantage is taken as a basis of international trade.

A country must specialize in production and export of that good or service in which it enjoys the comparative advantage.