Respuesta :
Answer: Comparative advantage
Explanation:
A comparative advantage occurs in a situation when two or more competitive manufacturing companies producing similar product are found in a market, and one of the companies is able to produce the product at a lower cost than their competitors.
Davey has a comparative advantage over Rebecca in producing candles.
In an economy, comparative advantage is defined as the ability to produce a certain good at a lower cost than its relative trading partners.
The correct statement of the blank is:
If Davey can produce candles at a lower opportunity cost than Rebecca then Davey has a comparative advantage in producing candles relative to Rebecca.
Comparative advantage is the situation in which the two or more competitive partners produce a similar product at different price rates. The competitor or seller producing the service or good at a lower cost than the other partners will have a comparative advantage.
For instance, Davey has a comparative advantage over Rebecca, as he can produce candles at a lower price than Rebecca.
Therefore, the correct answer is comparative advantage.
To know more about comparative advantage, refer to the following link:
https://brainly.com/question/13221821
