Countries Tend to Export Different Goods and Services Because Of

question 51

Multiple Choice

Countries tend to export different goods and services because of:

• A)differences in their comparative advantages.
• B)differences in tastes and technological needs.
• C)differences in income.
• D)similarities in resource endowment.
• E)differences in the exchange rates.

---

Definitions:

AVC

Average Variable Cost refers to the variable costs (such as labor and materials) per unit of output produced.

MR Output

The output level where marginal revenue equals marginal cost, guiding firms in maximizing their profitability.

Price

The amount of money required to purchase a good, service, or asset.

AVC

Average Variable Cost represents the variable costs (like materials and labor) associated with producing each unit of output.