Because of the Existence of Comparative Advantage, the Total Output

question 240

Multiple Choice

Because of the existence of comparative advantage, the total output of goods is higher when each producer

• A) produces several different goods.
• B) makes both intermediate and final goods.
• C) produces at the midpoint of its PPF.
• D) specializes in the production of a particular good.

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Definitions:

Information-Processing Capability

Information-Processing Capability refers to the efficiency and effectiveness with which an organization can process, store, and retrieve information to make decisions, solve problems, and adapt to new situations.

Adaptive Organisations

Organizations that are able to change and evolve in response to changes in the market, technology, or external environment.

Growth Strategies

Growth strategies involve expansion of the organisation’s current operations.

Organic Designs

Organizational structures that are flexible, decentralized, and characterized by open communication channels.