The advantage to the nation.

Question

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Answer 1

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 9, Problem 1CQQ

To determine

The advantage to the nation.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'a' is correct.

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

Option (a):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. The ability to produce the good at lower opportunity cost is known as the comparative advantages and thus when there is an international trade opening in the country, the demand for the domestic steel will increase and the country will become the exporter of steel and so, option 'a' is correct.

Option (b):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and when the trade opens up between the countries, due to the lower opportunity cost, the supply of steel will increase and the country will become a steel exporter and not an importer which makes option 'b' incorrect.

Option (c):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and thus, the option 'c' which explains that the nation does not have any comparative advantage which is incorrect. So, option 'c' is incorrect.

Option (d):

The country has the comparative advantages of production because the country produces steel and the domestic price of steel is lower than the foreign countries. Thus, the country has the comparative advantages in the production of steel and thus when the trade opens: it becomes the exporter and not importer. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Absolute advantage: It is the ability to produce large quantities of commodities with the help of fewer inputs.

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Use the following table to work Problems 5 to 9. Minnie's Mineral Springs, a single-price monopoly, faces the market demand schedule: Price Quantity demanded (dollars per bottle) 10 8 (bottles per hour) 0 1 6 2 4 3 2 4 0 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule. 6. a. Draw a graph of the market demand curve and Minnie's marginal revenue curve. b. Why is Minnie's marginal revenue less than the price? 7. a. At what price is Minnie's total revenue maxi- mized? b. Over what range of prices is the demand for water from Minnie's Mineral Springs elastic? 8. Why will Minnie not produce a quantity at which the market demand for water is inelastic?

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Answer 2

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 9, Problem 1CQQ

To determine

The advantage to the nation.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'a' is correct.

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

Option (a):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. The ability to produce the good at lower opportunity cost is known as the comparative advantages and thus when there is an international trade opening in the country, the demand for the domestic steel will increase and the country will become the exporter of steel and so, option 'a' is correct.

Option (b):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and when the trade opens up between the countries, due to the lower opportunity cost, the supply of steel will increase and the country will become a steel exporter and not an importer which makes option 'b' incorrect.

Option (c):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and thus, the option 'c' which explains that the nation does not have any comparative advantage which is incorrect. So, option 'c' is incorrect.

Option (d):

The country has the comparative advantages of production because the country produces steel and the domestic price of steel is lower than the foreign countries. Thus, the country has the comparative advantages in the production of steel and thus when the trade opens: it becomes the exporter and not importer. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Absolute advantage: It is the ability to produce large quantities of commodities with the help of fewer inputs.

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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 9, Problem 1CQQ

To determine

The advantage to the nation.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'a' is correct.

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

Option (a):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. The ability to produce the good at lower opportunity cost is known as the comparative advantages and thus when there is an international trade opening in the country, the demand for the domestic steel will increase and the country will become the exporter of steel and so, option 'a' is correct.

Option (b):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and when the trade opens up between the countries, due to the lower opportunity cost, the supply of steel will increase and the country will become a steel exporter and not an importer which makes option 'b' incorrect.

Option (c):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and thus, the option 'c' which explains that the nation does not have any comparative advantage which is incorrect. So, option 'c' is incorrect.

Option (d):

The country has the comparative advantages of production because the country produces steel and the domestic price of steel is lower than the foreign countries. Thus, the country has the comparative advantages in the production of steel and thus when the trade opens: it becomes the exporter and not importer. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Absolute advantage: It is the ability to produce large quantities of commodities with the help of fewer inputs.

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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 9, Problem 1CQQ

To determine

The advantage to the nation.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'a' is correct.

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

Option (a):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. The ability to produce the good at lower opportunity cost is known as the comparative advantages and thus when there is an international trade opening in the country, the demand for the domestic steel will increase and the country will become the exporter of steel and so, option 'a' is correct.

Option (b):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and when the trade opens up between the countries, due to the lower opportunity cost, the supply of steel will increase and the country will become a steel exporter and not an importer which makes option 'b' incorrect.

Option (c):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and thus, the option 'c' which explains that the nation does not have any comparative advantage which is incorrect. So, option 'c' is incorrect.

Option (d):

The country has the comparative advantages of production because the country produces steel and the domestic price of steel is lower than the foreign countries. Thus, the country has the comparative advantages in the production of steel and thus when the trade opens: it becomes the exporter and not importer. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Absolute advantage: It is the ability to produce large quantities of commodities with the help of fewer inputs.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1CQQ

To determine

The advantage to the nation.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'a' is correct.

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

Option (a):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. The ability to produce the good at lower opportunity cost is known as the comparative advantages and thus when there is an international trade opening in the country, the demand for the domestic steel will increase and the country will become the exporter of steel and so, option 'a' is correct.

Option (b):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and when the trade opens up between the countries, due to the lower opportunity cost, the supply of steel will increase and the country will become a steel exporter and not an importer which makes option 'b' incorrect.

Option (c):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and thus, the option 'c' which explains that the nation does not have any comparative advantage which is incorrect. So, option 'c' is incorrect.

Option (d):

The country has the comparative advantages of production because the country produces steel and the domestic price of steel is lower than the foreign countries. Thus, the country has the comparative advantages in the production of steel and thus when the trade opens: it becomes the exporter and not importer. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Absolute advantage: It is the ability to produce large quantities of commodities with the help of fewer inputs.

Answer 6

Chapter 9, Problem 1CQQ

To determine

The advantage to the nation.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'a' is correct.

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

Option (a):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. The ability to produce the good at lower opportunity cost is known as the comparative advantages and thus when there is an international trade opening in the country, the demand for the domestic steel will increase and the country will become the exporter of steel and so, option 'a' is correct.

Option (b):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and when the trade opens up between the countries, due to the lower opportunity cost, the supply of steel will increase and the country will become a steel exporter and not an importer which makes option 'b' incorrect.

Option (c):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and thus, the option 'c' which explains that the nation does not have any comparative advantage which is incorrect. So, option 'c' is incorrect.

Option (d):

The country has the comparative advantages of production because the country produces steel and the domestic price of steel is lower than the foreign countries. Thus, the country has the comparative advantages in the production of steel and thus when the trade opens: it becomes the exporter and not importer. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Absolute advantage: It is the ability to produce large quantities of commodities with the help of fewer inputs.

Answer 7

Chapter 9, Problem 1CQQ

To determine

The advantage to the nation.

Answer 8

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'a' is correct.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

Option (a):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. The ability to produce the good at lower opportunity cost is known as the comparative advantages and thus when there is an international trade opening in the country, the demand for the domestic steel will increase and the country will become the exporter of steel and so, option 'a' is correct.

Option (b):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and when the trade opens up between the countries, due to the lower opportunity cost, the supply of steel will increase and the country will become a steel exporter and not an importer which makes option 'b' incorrect.

Option (c):

When the domestic price of the commodity is lower than the price in the foreign countries, it denotes that the domestic country is able to produce the good at lower opportunity cost than the foreign countries. This ability of the country is known as the comparative advantages and thus, the option 'c' which explains that the nation does not have any comparative advantage which is incorrect. So, option 'c' is incorrect.

Option (d):

The country has the comparative advantages of production because the country produces steel and the domestic price of steel is lower than the foreign countries. Thus, the country has the comparative advantages in the production of steel and thus when the trade opens: it becomes the exporter and not importer. Thus, option 'd' is incorrect.

Answer 12

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Absolute advantage: It is the ability to produce large quantities of commodities with the help of fewer inputs.

Answer 13

Ch. 9.1 - Prob. 1QQ Ch. 9.2 - Prob. 2QQ Ch. 9.3 - Prob. 3QQ Ch. 9 - Prob. 1CQQ Ch. 9 - Prob. 2CQQ Ch. 9 - Prob. 3CQQ Ch. 9 - Prob. 4CQQ Ch. 9 - Prob. 5CQQ Ch. 9 - Prob. 6CQQ Ch. 9 - Prob. 1QR

The advantage to the nation.

The advantage to the nation.

Answer to Problem 1CQQ

Explanation of Solution

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Chapter 9 Solutions