According to the Heckscher- Ohlin Model,the Source of Comparative Advantage

question 24

Multiple Choice

According to the Heckscher- Ohlin model,the source of comparative advantage is a country's

• A)technology.
• B)advertising.
• C)human capital.
• D)political system.
• E)factor endowments.

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Definitions:

Marginal Revenue

The additional income earned by producing and selling one more unit of a product.

Marginal Costs

The additional cost incurred in producing one more unit of a good or service.

Average Revenue

The amount of income generated per unit of output, calculated by dividing total revenue by the number of units sold.

Average Total Costs

The total costs of production (fixed and variable costs) divided by the number of units produced, showing the cost per unit.