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Japan Has Developed a Comparative Advantage in Designing and Producing

question 42

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Japan has developed a comparative advantage in designing and producing automobiles.The source of its comparative advantage in these products is


Definitions:

Inputs

The resources, such as labor, materials, and capital, that are used in the production process to produce goods or services.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified time period.

Total Cost Curve

A graphical representation showing the total cost of producing different levels of output in the short run or long run.

Quantity

The amount or number of units of a product, good, or service available or demanded in a market.

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