A comparative advantage is the ability of a country to produce a particular good or service at a lower
another country
tha
a opportunity cost
b. production cost
c. absolute advantage
d manufacturing advantage
Please select the best answers from the choices provided,
Ο Α
OB
о с
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A comparative advantage is the ability of a country to produce a particular good or service at a lower opportunity cost than another country.

Option a

Explanation:

Comparative advantage gives a company the capability to sell services and goods at a lower price than its rival companies and increase the sales margins.

It defines the economic reality of the work gains from trade for business entity, firms, nations or individuals that develops from differences in their technological progress or factor endowments.

Opportunity costs in simpler words, can be stated as the value of the next best thing that we give up whenever we make a decision. In other words, it is the lost profit when one best alternative is selected over the other.

For example, deciding to invest $5,000,000 in a product line that will yiels or generate a investment return of 5%.

the first phase of the government’s plan for settlement was building the transcontinental railroad. the railroad provided a way to bring settlers and manufactured goods west and ship their agricultural and mining produce east. the transcontinental railroad was an essential artery for rapid development of the frontier.

the second phase of the government’s plan was a liberal land distribution policy that made it possible for many people to homestead. with these two key elements—transportation and cheap land—the government rapidly achieved its goal of persuading people to move west, settle on farms, and push back the frontier.

c. 2,000 bce

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