Suppose a Producer Requires a Smaller Quantity of Inputs to Produce

question 193

Multiple Choice

Suppose a producer requires a smaller quantity of inputs to produce carrots than to produce onions. Is this information sufficient to determine in which good the producer has a comparative advantage?

• A) Yes, the producer has a comparative advantage in carrots.
• B) Yes, the producer has a comparative advantage in onions.
• C) No, because information about the costs of inputs is missing.
• D) No, because information about other producers is missing.

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Definitions:

Product's Advantage

The unique benefits or features of a product that give it an edge over competing products in the marketplace.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

International Expansion

The process of a business extending its operations or market reach beyond its home country.

Corporate Jet

A private jet owned or leased by a corporation for the transportation of its executives, employees, or clients, often signifying luxury or efficiency in business travel.