Once a nation has been producing a good or service for some time,
A)its supply curve for that product is vertical
B)its supply curve for that product is horizontal at the world price
C)it often develops a comparative advantage in producing that good or service
D)its moves along its production possibilities frontier and produces more of it
E)its production possibilities frontier shifts outward

Question

Quizplus · Accepted Answer

Over time, a nation may become more skilled and efficient in producing a certain good or service, which leads to a lower opportunity cost compared to other nations. This results in a comparative advantage in producing that good or service, which means the nation will specialize in producing that product and trade with other nations.

Once a Nation Has Been Producing a Good or Service