the ability of one party to produce a good or service at a lower cost than any competitor
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comparative advantage
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the ability of one party to produce a good or service at a lower opportunity cost than any competitor
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efficient
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completed in the fastest amount of time using the fewest number of resources
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opportunity
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a favorable occasion to complete or participate in something
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specialization
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the act of limiting the kinds of goods and services produced
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Which best describes how producers benefit from specialization?
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Producers can increase their profits.
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Which calculation helps determine which producer has the absolute advantage?
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Amount produced minus resources used.
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Which company has the comparative advantage in producing large tubes of toothpaste?
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Sparkling
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Use the numbers to place the companies in order of greatest comparative advantage to least comparative advantage in producing small tubes of toothpaste.
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1,2,3,4??
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All else being equal, which bakery has the absolute advantage?
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Mrs. Track's??
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A producer with a comparative advantage has the ability to produce a good or service at....
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....a lower opportunity cost than any competitor can.
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The term __________, often used in conjunction with absolute advantage, is defined as making the best use of resources.
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efficiency
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Which best describes how consumers may benefit from specialization?
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Consumers have more price options.
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Which company has the comparative advantage in producing small tubes of toothpaste?
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Mmmint
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Which best describes specialization?
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developing expertise in certain types of production
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______________ is the act of limiting the types of goods and services produced.
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Specialization
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Which best explains why producers choose to specialize?
