When a Producer Has a Comparative Advantage at Producing a Good,it

question 56

Multiple Choice

When a producer has a comparative advantage at producing a good,it means the producer:

• A)can produce more of that good than others with the same number of workers.
• B)has the ability to produce a good or service at a lower opportunity cost than others.
• C)has no reason to trade with others.
• D)is efficient.

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Definitions:

Gallons

A unit of volume measurement used primarily in the United States, defined as 231 cubic inches or approximately 3.785 liters.

Ambrosia

In classical mythology, the food of the gods, which conferred immortality; in general usage, something very pleasing to taste or smell.

Plowshares

Metal blades fitted to a plow, used in farming to cut through the soil.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than other entities, leading to more efficient economic exchanges.