When a Producer Has a Comparative Advantage at Producing a Good

question 60

Multiple Choice

When a producer has a comparative advantage at producing a good, it means the producer:

• A) can produce more of that good than others with the same number of workers.
• B) has the ability to produce the good at a lower opportunity cost than others.
• C) has no reason to trade with others.
• D) is efficient in production.

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Definitions:

Customizing Services

Modifying or tailoring services to meet the specific needs or preferences of individual customers.

Variable Nature of Services

Describes the characteristics of services that make them less consistent and more difficult to standardize compared to physical products.

Intangible

Refers to something that cannot be physically touched or measured but holds value, such as intellectual property, brand reputation, or goodwill.

Pure Product

A good that is not altered or combined with any other goods, offered in its simplest form in the market.