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Sarah Clifford
on Nov 29, 2024

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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.
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Rodolfo PerezDec 01, 2024
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