Country A can produce gadgets at a lower opportunity cost than any other producer of gadgets. As a result Country A must have . a) a superior gadget making technology b) an absolute advantage in gadget production c) a comparative advantage in gadget production d) a constant opportunity cost associated with gadget production e) more factors of production devoted to gadget production than any other country

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter28: International Trade
Section: Chapter Questions
Problem 7P
icon
Related questions
Question

Country A can produce gadgets at a lower opportunity cost than any other producer of gadgets. As a result Country A must have .

a) a superior gadget making technology

b) an absolute advantage in gadget production

c) a comparative advantage in gadget production

d) a constant opportunity cost associated with gadget production

e) more factors of production devoted to gadget production than any other country

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Comparative Advantage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
Economics
ISBN:
9781337613057
Author:
Tucker
Publisher:
CENGAGE L
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning