Asked by
Sarah Clifford
on Nov 29, 2024Verified
If Germany can make compact cars more efficiently than Russia,it enjoys
A) a comparative advantage.
B) an absolute advantage.
C) no advantage.
Comparative Advantage
The ability of an entity to produce a good or offer a service at a lower opportunity cost than another.
Absolute Advantage
The ability of a country to produce a good at a lower cost than its trading partners.
- Understand the concept of absolute versus comparative advantage in trade.
Verified Answer
RP
Learning Objectives
- Understand the concept of absolute versus comparative advantage in trade.