A Country with a Comparative Advantage in Producing Computer Chips

question 109

Multiple Choice

A country with a comparative advantage in producing computer chips

• A)Has a lower opportunity cost of producing computer chips than its trading partners.
• B)Can produce computer chips with fewer resources than its trading partners.
• C)Can achieve better terms of trade in selling computer chips than its trading partners.
• D)Has greater capacity to produce computer chips,given its resources,than do its trading partners.

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Definitions:

Multiproduct Break-Even

An analysis used to determine the point at which total revenue equals total costs for multiple products, indicating no profit or loss.

Weighted Contribution

A calculation that assigns different weights or importance to various items or activities based on their contribution to the total.

Crossover

In genetics, the exchange of genetic material between chromosomes during meiosis; in other fields, it refers to a point where two or more different categories or entities meet.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.