If a Country Produces Only Two Goods,then It Is Not

question 178

True/False

If a country produces only two goods,then it is not possible to have a comparative advantage in the production of both those goods.

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Definitions:

Increasing Returns

An increase in firm’s output by a larger percentage than the percentage increase in its inputs.

MC

Marginal Cost, the change in total production cost that comes from making or producing one additional unit.

ATC

Average Total Cost, which is the total cost divided by the number of goods produced, representing the per-unit production cost.

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced, indicative of variable costs per unit of output.