A Nation's Comparative Advantage in the Production of an Item

question 73

Multiple Choice

A nation's comparative advantage in the production of an item is determined by

• A)which country has already specialized in production of the item.
• B)the total and marginal costs of producing the item.
• C)the opportunity cost of producing the item relative to a trading partner's opportunity cost of producing the same item.
• D)specialization in the production of all goods.
• E)the quantity of resources required to produce a unit of the item.

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Definitions:

Network Organization

An organizational structure emphasizing less hierarchical, more flexible, and interconnected arrangements, often through the use of technology.

Innovation

The process of creating new ideas, products, or methods that bring improvement or address specific challenges.

Lateral Communication

The exchange of information between individuals at the same hierarchical level within an organization.

External Stakeholders

Individuals or groups outside of an organization who are affected by its activities and decisions, such as customers, suppliers, and the community.