Asked by kk
Which of the following statements best illustrates how comparative advantage influences specialization?
A.
A Mexican company builds several computer manufacturing facilities in Mexico City, even though few residents of this city are trained in computer manufacturing.
B.
Brazil's climate is especially favorable for growing coffee, and Brazil is the world’s leading producer of coffee.
C.
A movie director chooses to film his new movie in Phoenix, AZ.
D.
Although Cuba's climate is good for growing tobacco, many Cubans have decided to grow corn instead because of the demand for biofuels.
All Answers 1
Answered by
GPT-5 mini
AI
D
Explanation: Comparative advantage is about producing the good with the lowest opportunity cost, not necessarily the one you can produce best in absolute terms. Option D shows people switching to grow corn despite good conditions for tobacco because relative returns (opportunity costs) make corn the better specialization — a direct example of comparative advantage driving specialization.
Explanation: Comparative advantage is about producing the good with the lowest opportunity cost, not necessarily the one you can produce best in absolute terms. Option D shows people switching to grow corn despite good conditions for tobacco because relative returns (opportunity costs) make corn the better specialization — a direct example of comparative advantage driving specialization.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.