Which Country Has Absolute Advantage in Producing Potatoes

question 18

Multiple Choice

Which country has absolute advantage in producing potatoes?

• A)Russia
• B)Byelorussia
• C)Both countries
• D)Neither country

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the total gains from undertaking an economic activity.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

ATC

Stands for Average Total Cost, which is the sum of all costs (fixed and variable) divided by the quantity of output produced.

Economic Profit

The surplus remaining when total revenue is greater than total cost, including both explicit and implicit costs, often indicating a company's profitability.