Suppose Japan Produces Widget a at the Lowest Cost

question 86

Multiple Choice

Suppose Japan produces Widget A at the lowest cost.Then, Sweden discovers and uses new technology to produce Widget A at a slightly lower cost.What could Japan do to increase its comparative advantage in Widget A?

• A) Japan could specialize on aspects of Widget A for which it is more productive relative to Sweden.
• B) Japan can produce less of Widget A.
• C) Japan can use its manufacturing sector to produce a different kind of widget.
• D) Japan can continue to produce Widget A with no changes in production.

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Definitions:

Payment Method

The means by which a payment is made and received, including cash, credit cards, bank transfers, and digital payment platforms.