A Country Will Specialize in That Good in Which

question 61

Multiple Choice

A country will specialize in that good in which

• A)it has absolute advantage.
• B)it has a moderate cost of production.
• C)it can produce at minimum average cost.
• D)it has comparative advantage.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Curds

A dairy product obtained by coagulating milk in a cheese-making process, known for their mild flavor and soft texture.

Whey

A by-product of cheese production, consisting of the liquid remaining after milk has been curdled and strained; rich in protein and used in dietary supplements and food products.

Utility Function

This represents how consumer preferences can be quantified based on different levels of consumption of various goods and services.