Table 13.14 shows the output of kumquats per month.

-If a country is able to produce all products more cheaply than any other country can,then there is no advantage in trade.

Question

Table 13.14 shows the output of kumquats per month.
 
-If a country is able to produce all products more cheaply than any other country can,then there is no advantage in trade.

Quizplus · Accepted Answer

The production cost is not the only factor that determines the advantage in trade. There are other factors such as comparative advantage, specialization, and economies of scale that can create an advantage in trade even if a country produces all products more cheaply than any other country can.

Table 1314 Shows the Output of Kumquats Per Month