Asked by
abdulmajid al thaqeb
on Oct 11, 2024Verified
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.
Verified Answer
IR
Learning Objectives
- 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.