A country has a(n) ___________ in making a product for which it can maintain a monopoly or that it can produce at a lower cost than any competitor.

Question

Quizplus · Accepted Answer

An absolute advantage refers to a country's ability to produce a good or service using fewer resources (e.g. labor, capital, etc.) than another country. This gives the country a competitive edge in terms of production efficiency and cost-effectiveness. If a country has an absolute advantage in producing a particular product, it can maintain a monopoly position in the market or sell the product at a lower cost than its competitors. Therefore, C is the most appropriate answer. A trade surplus (A) refers to a situation where a country exports more goods and services than it imports. A trade deficit (B) refers to a situation where a country imports more goods and services than it exports. Comparative advantage (D) refers to a country's ability to produce a good or service at a lower opportunity cost than another country. While comparative advantage is also an important concept in international trade, it is not the most suitable answer to the given question.

A Country Has A(n) ___________ in Making a Product for Which