________ Has the Comparative Advantage in Computers and ________ Has

question 75

Multiple Choice

________ has the comparative advantage in computers and ________ has the comparative advantage in smartphones.

• A) Smith; Smith
• B) Smith; Ricardo
• C) Ricardo; Smith
• D) Ricardo; Ricardo
• E) Neither Smith nor Ricardo; Smith

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Definitions:

Artificially Scarce Good

A product or service whose supply is intentionally restricted to increase its price or value, often contrary to its natural abundance.

Pay-Per-View

A service by which viewers can purchase events to be viewed on television and pay for the private telecast of that event to their homes.

External Cost

Costs incurred by a third party due to an economic activity but not accounted for by the producer or consumer.

Marginal Costs

An additional delineation of the expenses incurred in the production of one more unit of a product.