Comparative Advantage

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#11 week ago
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+Comparative advantage is an economic principle where an entity can produce a good or service at a lower [opportunity cost](/wiki/opportunity_cost) than another. This inherent difference drives mutually beneficial [trade](/wiki/trade), even when one party holds an absolute advantage in all areas. Specialization based on comparative advantage leads to greater overall efficiency and welfare.
+## See also
+- [Opportunity Cost](/wiki/opportunity_cost)
+- [Absolute Advantage](/wiki/absolute_advantage)
+- [Specialization](/wiki/specialization)
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