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abdulmajid al thaqeb
on Oct 11, 2024

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If nation A can produce a product at a lower opportunity cost per unit than nation B,nation A

A) has a specialization advantage.
B) has an absolute advantage.
C) has a comparative advantage.
D) has a production advantage.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade.

  • Comprehend the fundamentals of global trade and the concept of comparative advantage.
  • Comprehend the principle of absolute in contrast to comparative advantage within the context of trade.
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Inderpreet RattolOct 13, 2024
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