Which of the following is correct about ‘comparative advantage’?

1
One firm having comparative edge on the other due to its specialities
2
The situation neutralizing the edge between two companies with the right kind of comparative measures. 
3
Specializing in the production of things that individual/companies are relatively good at and trading with others who specialize in what they are relatively good at
4
More than one of the above
5
None of the above

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