A comparative advantage is?(1 point)

Question

Responses

a country’s ability to produce goods or services at a lower cost than their trading partners
a country’s ability to produce goods or services at a lower cost than their trading partners

your market competition
your market competition

supply chain demand
supply chain demand

none of these

Answer 1

The correct response is:

a country’s ability to produce goods or services at a lower cost than their trading partners.

This definition captures the essence of comparative advantage, which is a key concept in international trade theory.