**Question 10**_Suppose a country with a comparative advantage in product A focuses on making and selling that product while purchasing product B, for which it does not have a comparative advantage. What is this called?_A. monopoly B. specialization C. oligopoly D. reciprocity---**Explanation of Answer Options:**- **A. Monopoly:** This is when a single company or country has exclusive control over a commodity or service.- **B. Specialization:** This is when a country or company focuses on the production of a limited scope of products to gain greater degrees of productive efficiency within their entire system.- **C. Oligopoly:** This is a market structure in which a small number of firms have the majority of market share.- **D. Reciprocity:** This is when countries grant mutual concessions to each other, typically in the form of trade benefits or tariff reductions.

Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…

Suppose a country with a comparative advantage in product A focuses on making and selling that product while purchasing product B, for which it does not have a comparative advantage. What is this called? A monopoly B specialization C oligopoly D reciprocity

Suppose a country with a comparative advantage in product A focuses on making and selling that product while purchasing product B, for which it does not have a comparative advantage. What is this called? A monopoly B specialization C oligopoly D reciprocity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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