What Is Comparative Cost Advantage?


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Audra  Ardell Profile
Audra Ardell answered
I just did a project on this in school. Comparative cost advantage is the ability of an individual, country, region, or group to produce a good or service at a lower opportunity cost than that of a competing group/individual. In other words, it is the ability to produce a product the most efficiently. To find a country's comparative advantage, compare their opportunity costs (the value of the next best choice).

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