Answer:
D) comparative advantage
Explanation:
The term used in describing the ability to produce good or service at lower overall cost is known as?
The requirement in this case is to distinguish between absolute advantage and comparative advantage, the former means the ability to produce more goods or services than a counterpart whereas the latter means producing at the lower opportunity cost.
Note that costs in Economics means both implicit(opportunity costs) and explicit costs(out of pocket expenses), in essence, a product with only implicit costs would only consider opportunity costs as overall costs.
Overall, the correct option is comparative advantage.
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