Use the Following to Answer Question

question 95

Multiple Choice

Use the following to answer question:

-(Figure: Comparative Advantage) Use Figure: Comparative Advantage.Eastland has an absolute advantage in producing:

• A)oranges only.
• B)peaches only.
• C)both oranges and peaches.
• D)neither oranges nor peaches.

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Definitions:

Product Price

The amount of money required to purchase a good or service, determined by factors like production cost, market demand, and competition.

Optimal Output

The level of production at which a company can achieve the highest possible profit, balancing costs and revenues effectively.

Normal Profit

Normal profit is the minimum level of earnings necessary for a company to remain competitive in the market, covering its opportunity costs.

Market Equilibrium

A state where the supply of goods matches demand, leading to a stable price level for those goods.