Asked by Christina Ercolani on Apr 25, 2024
In a two-nation world, comparative advantage in the production of a particular product means that one nation can produce
A) the product with fewer inputs than the other nation.
B) the product at lower average cost than the other nation.
C) the product at a lower domestic opportunity cost than the other nation.
D) more of the product than the other nation.
Domestic Opportunity Cost
The opportunity cost of producing goods domestically rather than importing them, measured by what is given up in the domestic production of other goods.
- Understand the merits of dedicating resources to specialization and exchanging goods or services through comparative advantage.
Learning Objectives
- Understand the merits of dedicating resources to specialization and exchanging goods or services through comparative advantage.
Related questions
The Benefits to Trading Nations Based on Comparative Advantage Accrue ...
The Principle of Comparative Advantage Indicates That Mutually Beneficial International ...
If Resources Are Equally Adaptable to the Production of Different ...
Mark and Julie Are Going to Sell Brownies and Cookies ...
Which of the Following Does Not Result in a Mutually ...