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What does the concept of comparative advantage focus on?
- a)Producing goods at lower costs
- b)Maximizing domestic production
- c)Reducing international trade
- d)Producing goods at higher opportunity costs
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What does the concept of comparative advantage focus on?a)Producing go...
Concept of Comparative Advantage:
Comparative advantage is an economic concept that focuses on producing goods at lower costs. It suggests that countries should specialize in producing goods that they can produce at a lower opportunity cost than other countries. This allows countries to trade with each other and benefit from the differences in production costs.
Key Points:
1. Lower Costs:
The main focus of comparative advantage is on producing goods at lower costs. By specializing in the production of goods where they have a comparative advantage, countries can increase efficiency and reduce production costs.
2. Specialization:
Comparative advantage emphasizes the importance of specialization in production. By focusing on producing goods where they have a comparative advantage, countries can maximize their productivity and overall output.
3. International Trade:
Comparative advantage also highlights the benefits of international trade. By trading goods that they can produce more efficiently, countries can access a wider range of products at lower costs, leading to overall economic growth and welfare.
4. Opportunity Costs:
The concept of comparative advantage is based on the idea of opportunity costs. Countries should focus on producing goods where they have a lower opportunity cost, meaning they give up less to produce that particular good.
In conclusion, the concept of comparative advantage focuses on producing goods at lower costs by specializing in the production of goods where countries have a comparative advantage. This leads to increased efficiency, productivity, and overall economic growth through international trade.
Comparative advantage is an economic concept that focuses on producing goods at lower costs. It suggests that countries should specialize in producing goods that they can produce at a lower opportunity cost than other countries. This allows countries to trade with each other and benefit from the differences in production costs.
Key Points:
1. Lower Costs:
The main focus of comparative advantage is on producing goods at lower costs. By specializing in the production of goods where they have a comparative advantage, countries can increase efficiency and reduce production costs.
2. Specialization:
Comparative advantage emphasizes the importance of specialization in production. By focusing on producing goods where they have a comparative advantage, countries can maximize their productivity and overall output.
3. International Trade:
Comparative advantage also highlights the benefits of international trade. By trading goods that they can produce more efficiently, countries can access a wider range of products at lower costs, leading to overall economic growth and welfare.
4. Opportunity Costs:
The concept of comparative advantage is based on the idea of opportunity costs. Countries should focus on producing goods where they have a lower opportunity cost, meaning they give up less to produce that particular good.
In conclusion, the concept of comparative advantage focuses on producing goods at lower costs by specializing in the production of goods where countries have a comparative advantage. This leads to increased efficiency, productivity, and overall economic growth through international trade.
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What does the concept of comparative advantage focus on?a)Producing go...
Comparative advantage focuses on producing goods and services at lower opportunity costs, which leads to more efficient and beneficial international trade.
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What does the concept of comparative advantage focus on?a)Producing goods at lower costsb)Maximizing domestic productionc)Reducing international traded)Producing goods at higher opportunity costsCorrect answer is option 'A'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What does the concept of comparative advantage focus on?a)Producing goods at lower costsb)Maximizing domestic productionc)Reducing international traded)Producing goods at higher opportunity costsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What does the concept of comparative advantage focus on?a)Producing goods at lower costsb)Maximizing domestic productionc)Reducing international traded)Producing goods at higher opportunity costsCorrect answer is option 'A'. Can you explain this answer?.
What does the concept of comparative advantage focus on?a)Producing goods at lower costsb)Maximizing domestic productionc)Reducing international traded)Producing goods at higher opportunity costsCorrect answer is option 'A'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What does the concept of comparative advantage focus on?a)Producing goods at lower costsb)Maximizing domestic productionc)Reducing international traded)Producing goods at higher opportunity costsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What does the concept of comparative advantage focus on?a)Producing goods at lower costsb)Maximizing domestic productionc)Reducing international traded)Producing goods at higher opportunity costsCorrect answer is option 'A'. Can you explain this answer?.
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