If Someone Has a Comparative Advantage in Growing Pineapples

question 57

Multiple Choice

If someone has a comparative advantage in growing pineapples,

• A) they can grow pineapples at a lower opportunity cost than other pineapple growers.
• B) they also have an absolute advantage in growing pineapples.
• C) they can grow more pineapples using the same resources than other pineapple growers.
• D) pineapples are the only product they can grow.

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Definitions:

Quantity of Output

The amount of goods or services produced by a company, sector, or economy within a specific period.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing a specific amount of output.

Variable Cost

Expenses that fluctuate based on the volume of goods or services a company generates, including materials and labor.