Comparative Advantage. The ability of an individual firm or country to produce a good or service at a lower opportunity cost than competitors. Opportunity Cost. The highest valued alternative that must be given up to engage in an activity.
Is it possible for a country to have a comparative advantage quizlet?
A country will not have a comparative advantage producing a good if its opportunity cost of producing that good is higher than that for other​ countries, even if it is producing efficiently.
Which situation is an example of comparative advantage in an international market quizlet?
Factories in Country A can produce the same number of tablets as factories in Country B, or the factories in Country A could be used to build more laptops than the factories in Country B is an example of comparative advantage in an international market.
Is it possible for a country to have a comparative advantage in producing a good?
A comparative advantage exists when a country can produce goods at lower opportunity cost compared to other countries. It is not possible for a country to have a comparative advantage in all goods. However, a country can have an absolute advantage in all goods.
When does a country have a comparative advantage?
A country is said to have a comparative advantage in the production of a good when it: a. has the lower opportunity cost of producing the good. b. can produce the good using fewer resources than another country. c. requires fewer labor hours to produce the good. d. all of the above.
Can a nation have an absolute advantage in every production?
A nation cannot have an absolute advantage in the production of every good. D. A nation cannot have a comparative advantage in the production of every good.
What makes a country better than another country?
A country that can produce a good using fewer resources than another country has a (an): a. lower opportunity cost of producing the good than another country. b. absolute advantage. c. specialization in the production of the good. d. all of the above.
Which is an example of a competitive advantage?
Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. A country is said to have a comparative advantage in the production of a good (say cloth) if it can produce cloth at a lower opportunity cost than another country.
