Comparative advantage refers to the ability to produce a good or service at:

Comparative advantage is a key concept in economics that describes the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost compared to others. This means that when determining who should produce what, it's not just about who can produce more of a good, but rather who can produce that good with the least sacrifice of alternative goods.

For example, if a country can produce wine by sacrificing fewer resources or alternatives than another country can, it has a comparative advantage in wine production. This advantage allows countries or individuals to specialize in their most efficient areas, leading to increased overall production and trade benefits.

By focusing on lower opportunity costs, economies can engage in trade that benefits all parties involved—allowing each to enjoy a greater variety or volume of goods than they could produce independently. Therefore, recognizing comparative advantage helps in making informed decisions about production and trade specialization.