When a country has a comparative advantage in the production of a good it means that it can produce quizlet?

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When a country has a comparative advantage in production of a good?
When a country has a comparative advantage in the production of a good it means quizlet?
What does it mean to have a comparative advantage in production?
When a producer has a comparative advantage at producing a good it means the producer?

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The production possibilities frontier shows the various combinations of output that the economy can possibly produce given the available factors of production and production technology. In this case, the slope of each person's production possibilities frontier represents the opportunity cost of producing tacos in terms of pizzas. Since Luigi gives up producing 300 pizzas when he chooses to make 300 meatballs, the opportunity cost of producing a meatball is 300/300=1 pizza. Similar calculations yield an opportunity cost of 300/400=0.75 pizza per meatball for Maria. Because Maria has the lower opportunity cost for producing meatballs, she should make the first 400 meatballs and then Luigi should supplement with the necessary meatball production and produce whatever pizzas he can with his remaining resources. For example, if Maria produces 400 meatballs and 0 pizzas, then Luigi can produce 0 meatballs and 300 pizzas. If instead Maria produces 400 meatballs and 0 pizzas, then Luigi can produce 100 meatballs and 200 pizzas, for a total production of 400 + 100 = 500 meatballs and 200 pizzas. Lastly, if Maria produces 400 meatballs and 0 pizzas, then Luigi can only produce 150 meatballs and 150 pizzas for a total production of 400 + 150 = 550 meatballs and 150 pizzas. Since there is not a more productive way for them to allocate resources to produce 550 meatballs, you know that 550 meatballs and 250 pizzas cannot represent total production in one day.

The production possibilities frontier shows the various combinations of output that the economy can possibly produce given the available factors of production and production technology. In this case, the slope of each person's production possibilities frontier represents the opportunity cost of producing tacos in terms of burritos. Since Adam gives up producing 400 burritos when he chooses to make 400 tacos, the opportunity cost of producing a taco is 400/400=1 burrito. Similar calculations yield an opportunity cost of 100/400=0.25 burrito per taco for Deirdre. Because Deirdre has the lower opportunity cost for producing tacos, she should make the first 400 tacos and then Adam should supplement with the necessary taco production and produce whatever burritos he can with his remaining resources. For example, if Deirdre produces 400 tacos and 0 burritos, then Adam can produce 0 tacos and 400 burritos. If instead Deirdre produces 400 tacos and 0 burritos, then Adam can produce 150 tacos and 250 burritos, for a total production of 400 + 150 = 550 tacos and 250 burritos. Lastly, if Deirdre produces 400 tacos and 0 burritos, then Adam can only produce 300 tacos and 100 burritos for a total production of 400 + 300 = 700 tacos and 100 burritos. Since there is not a more productive way for them to allocate resources to produce 700 tacos, you know that 700 tacos and 150 burritos cannot represent total production in one day.

When a country has a comparative advantage in production of a good?

1. A country has comparative advantage in producing a good when the country's opportunity cost of producing the good is lower than the opportunity cost of producing the good in another country.

When a country has a comparative advantage in the production of a good it means quizlet?

Terms in this set (15) What do economists mean when they say a country has a comparative advantage in the production of a particular good? That the country can produce the good at a lower opportunity cost than other countries.

What does it mean to have a comparative advantage in production?

A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something.

When a producer has a comparative advantage at producing a good it means the producer?

When a producer has a comparative advantage in producing a good, it means the producer: has the ability to produce the good at a lower opportunity cost than others.