comparative advantage is group of answer choices a local responsiveness solution. similar to competitive advantage. where the company can produce the cheapest. advantages of nations over other nations.



Answer :

Comparative advantage is advantages of nations over other nations.

What do you mean by comparative advantage?

In an economic model, agents have a comparative advantage over others if they can provide that good at a lower relative opportunity cost and autarky pricing. Comparative advantage refers to the financial reality of trade advantages for people, firms, or nations as a result of disparities in their factor endowments or technological progress.

When a country can produce at a lower opportunity cost than in its trading counterparts, it has a comparative advantage. A country cannot have a comparative advantage in all commodities and services, but it can have an absolute advantage in all goods production.

So, the right answer is D.

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