Two Countries,A and B,produce Good X

question 231

Multiple Choice

Two countries,A and B,produce Good X.Which of the following statements is true of the trading price of Good X?

• A) The trading price of Good X will be less than the opportunity cost of producing the good in both nations.
• B) The trading price of Good X will be greater than the opportunity cost of producing the good in both nations.
• C) The trading price of Good X will lie between the opportunity costs of producing the good in both nations.
• D) The trading price of Good X will always be equal to the opportunity cost of producing the good in Country A.

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Definitions:

Year 2

A reference to the second year in a given context, typically used in financial forecasting or product development timelines.

Return On Total Assets

A financial metric that measures a company's earnings before interest and taxes (EBIT) relative to its total asset value.

Net Profit Margin Percentage

A financial metric that shows what percentage of a company's revenues is left over after all expenses have been deducted, indicating profitability.

Return On Equity

A financial ratio indicating the profitability of a firm in relation to shareholders' equity, showing how effectively a company uses investors' funds to generate profit.