Employing All Its Available Resources, Nation Alpha Can Produce Either

question 218

Multiple Choice

Employing all its available resources, Nation Alpha can produce either 800 units of chemicals or 1,600 units of clothing. Nation Beta can produce either 200 units of chemicals or 800 units of clothing.

• A)Nation Alpha has a comparative advantage in producing clothing.
• B)Nation Beta has a comparative advantage in producing chemicals.
• C)Nation Alpha has a comparative advantage in producing chemicals.
• D)Nation Beta is the high-cost producer of clothing.

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Definitions:

Variable Cost

A cost that varies with the level of output or sales, such as materials and labor directly involved in production.

Measure Of Activity

A quantifiable metric used to assess the level of operation or output, often tied to performance or productivity evaluation.

Variable Cost

Charges that fluctuate based on the quantity of output or level of sales.

Fixed Cost

Costs that remain unchanged regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.