Which of the Following Does Not Result in a Mutually

question 123

Multiple Choice

Which of the following does not result in a mutually beneficial trade between two countries?

• A) one country having a higher opportunity cost of production of a good than the other
• B) one country having an abundant supply of natural resources than the other
• C) one country's production being more efficient than the other
• D) one country having an absolute advantage over the other
• E) one country having a comparative advantage in producing a good than the other

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Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of output.

ATC Curve

The ATC (Average Total Cost) Curve is a graphical representation of how a firm's average total costs vary with output level, highlighting the cost efficiency of producing goods.

ATC Curve

The average total cost curve, which represents the per-unit total cost (fixed plus variable costs) of production for varying quantities of output.

Short Run

A time period in economics where at least one factor of production is fixed, limiting the immediate response of a firm to changes in market conditions.