What is comparitive advantage

Explanation:

Comparative advantage is the ability of an economy to use resources to manufacture goods and services at a lower opportunity cost than the other.

It is often manifested when a company produces and sells goods at lower price than another and still realizes more profit than the other.

The term was first used by David Ricardo in the year 1817 through his book; On the Principles of Political Economy and Taxation.

This concept is very essential in the field of economics and in understanding trades.

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