Asked by Logan Tippett on Jun 09, 2024
Verified
Chile has a comparative advantage over the United States in copper.Which factor is a source of this comparative advantage?
A) mild temperatures
B) large deposits of copper ore
C) no opportunity cost associated with copper production
D) high tariffs on copper from other nations
Comparative Advantage
The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.
Copper Ore
A natural mineral formation containing copper in sufficient concentration to make its economic extraction feasible.
- Uncover the elements constituting comparative advantage in international trade exchanges.
- Become aware of the impact of factor endowments on comparative advantage.
Verified Answer
SR
SIGIFREDO RIVERAJun 15, 2024
Final Answer :
B
Explanation :
Chile has a comparative advantage over the United States in copper due to its large deposits of copper ore. This means that Chile can produce copper at a lower cost than the United States, giving it a competitive edge in the global copper market.
Learning Objectives
- Uncover the elements constituting comparative advantage in international trade exchanges.
- Become aware of the impact of factor endowments on comparative advantage.
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