If country A has a comparative advantage in the production of good X over country B, then
A. country A also has an absolute advantage in the production of this good.
B. the opportunity cost of producing X in country A is higher than in country B.
C. the opportunity cost of producing X in country A is lower than in country B.
D. the opportunity cost of producing X in country A is higher or lower than in country B.
C. the opportunity cost of producing X in country A is lower than in country B.
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Refer to the figure above. If a per-unit tax of $3 is imposed on the sale of Good X, what is the tax revenue received by the government?
A) $20 million B) $10 million C) $12 million D) $60 million
Refer to the Article Summary. Economists refer to an increase in sales due to celebrity endorsements as being the result of
A) social influence. B) the ultimatum game. C) network externalities. D) the endowment effect.