Comparative advantage allows a country to produce goods at what type of cost?

Comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost compared to another country. This concept is fundamental in international trade and economics, as it explains how countries can benefit from specialization and trade.

When a country has a comparative advantage in producing a particular good or service, it means that it can produce that good more efficiently than others, sacrificing less in terms of alternative goods or services that could have been produced instead. This enables efficient resource allocation within the economy and leads to enhanced productivity and economic output.

By focusing on what they produce most efficiently, countries can trade for other goods they may not produce as efficiently, creating a situation where all trading partners have access to more goods than they would if they tried to produce everything on their own. This is why the notion of lower opportunity cost is critical in understanding how comparative advantage operates in global trade.