A country can produce grapes at a lower opportunity cost than its trading partners. When trading grapes, the country would have a(n):
A. absolute advantage.
B. comparative advantage.
C. trade deficit.
O D. trade surplus.
SUBMIT

B. comparative advantage.

Explanation:

Comparative advantage tend to be  determined by the type of resources that a country possess in abundance.  If a country possess a certain type of materials in large quantity, the cost of producing all products that require that material will be significantly cheaper compared to the products with scarce material.

Most countries in the world applied the concept of comparative advantage to a certain extend. They can focus their resources on producing smaller amount of products and purchase the rest of their needs from another country.

As another example, let's examine Saudi Arabia and Japan.

Saudi Arabia have an abundance of oil in their region. They could produce all oil-related product at significantly cheaper cost compared to Japan. So, they decided to focus their effort on maximizing oil production and reduce  the production in electronic product.

Saudi Arabia can sell their oil to obtain a lot of profit and could easily purchase the electronic products from Japan without having to produce them by their own.

the correct answer is ) possibility.

demonstrating opportunity cost is done through production possibility.

the opportunity cost can be demonstrated using the production possibility frontier or curve. this graphic shows the total number of possibilities for two products when we have the resources needed and used in an efficient manner. the main resources could be money, labor, and technology. the curve shows that the production of one good increases when the production of the othe

the boundarys like convergent divergent and transform it causes subduction