If Country a Has a Higher Opportunity Cost in Producing

question 196

Multiple Choice

If country A has a higher opportunity cost in producing good X than does country B,then we know that

• A)country B has an absolute advantage in the production of product X.
• B)country B has a comparative advantage in the production of product X.
• C)country A has an absolute advantage in the production of product X.
• D)country A has a comparative advantage in the production of product X.

---

Definitions:

Revenues Equal Costs

A financial break-even point where the total revenues generated equal the total costs incurred.

Value Creation

The process through which businesses or organizations produce goods or services that are worth more than the cost of the inputs involved.

Customer Appeal

The attractiveness of a product or service to potential and existing customers, often influencing their purchasing decisions.

Just-in-time Scheduling

A strategy used in manufacturing and production that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs.