If France Has a Comparative Advantage in Producing Cheese and It

question 92

Multiple Choice

If France has a comparative advantage in producing cheese and it allows trade:

• A)everyone in the country benefits
• B)everyone in the country loses
• C)the gains of the producers exceed the losses of the consumers
• D)the losses of the consumers exceed the gains of the producers

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Definitions:

Willingness to Pay

The maximum amount an individual or entity is willing to pay for a good or service, reflecting its perceived value.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing their gained benefit.

Market Price

The current price at which a commodity, security, or service can be bought or sold in a particular market.