Country A has great expertise in the production of planes and produces a large quantity of planes while country B has expertise in the production of automobiles and produces large quantities of cars. When the two countries trade planes for automobiles a. only country B benefits because through trade they can acquire planes that are more valuable than automobiles.
b. both countries improve allocative efficiency because they can now consume a more desirable combination of goods and services (planes and cars) through trade.
c. both countries improve allocative efficiency because they will both have the same number of cars and automobiles after trade.

B

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Allocative efficiency occurs in efficient markets when goods, services or capital are distributed in a way that is efficient to all the parties involved.

When countries trade in the goods for which they have a comparative advantage in its production, all the parties in the trade gains

engaging in financial planning?

just took my test

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.