The theory which predicts the resulting pattern of activities that resembles optimizing productivity determines the place products are manufactured and place it was assembled. Introduction: Comparative advantage is the theory that explains nation’s inability to produce a good more efficiently than other country but it can produce goods more efficiently than any other good.

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.5, Problem 3QS5

Summary Introduction

To Explain:

Thetheory which predicts the resulting pattern of activities that resembles optimizing productivity determines the place products are manufactured and place it was assembled.

Introduction:

Comparative advantage is the theory that explains nation’s inability to produce a good more efficiently than other country but it can produce goods more efficiently than any other good.

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.5, Problem 3QS5

Summary Introduction

To Explain:

Thetheory which predicts the resulting pattern of activities that resembles optimizing productivity determines the place products are manufactured and place it was assembled.

Introduction:

Comparative advantage is the theory that explains nation’s inability to produce a good more efficiently than other country but it can produce goods more efficiently than any other good.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.5, Problem 3QS5

Summary Introduction

To Explain:

Thetheory which predicts the resulting pattern of activities that resembles optimizing productivity determines the place products are manufactured and place it was assembled.

Introduction:

Comparative advantage is the theory that explains nation’s inability to produce a good more efficiently than other country but it can produce goods more efficiently than any other good.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 5.5, Problem 3QS5

Summary Introduction