Japan Is More Efficient in the Production of Rice,and the United

question 3

Multiple Choice

Japan is more efficient in the production of rice,and the United States is more efficient in the production of oranges.In the production of oranges,Japan is said to have a(n) :

• A)comparative advantage
• B)absolute disadvantage
• C)absolute advantage
• D)comparative disadvantage

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Definitions:

Mergers

The combination of two or more companies into one, with the goal of achieving synergies such as cost reductions and increased market share.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Business Combination

A transaction or event where two or more companies merge or one company acquires another to consolidate business operations.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.