Question

A person has a comparative advantage in an activity whenever he or she can do everything better than anyone else. can perform the activity at a lower opportunity cost than can anyone else. has an absolute advantage in the activity. can do the activity in less time than anyone else.

Answer 1

It's called a comparative advantage when one person can complete an activity with an opportunity cost that is lower than another person or persons. Most of the time when a person demonstrates a comparative advantage, the advantage can be credited to the person's education, experience, training, or a combination of the three.