QuestionJune 1, 2025

If the state of Texas has a lower opportunity cost for producing beef compared to Alaska then. __ A Texas has a comparative advantage in beef, and Alaska should purchase beef from Texas. B Texas has an absolute advantage in beef, and Alaska should purchase beef from Texas. C Texas has a comparative advantage in beef and should just produce beef for itself and not export to other states like Alaska. D Texas has an absolute advantage in beef and should share expertise with Alaska so they can develop an absolute advantage as well.

If the state of Texas has a lower opportunity cost for producing beef compared to Alaska then. __ A Texas has a comparative advantage in beef, and Alaska should purchase beef from Texas. B Texas has an absolute advantage in beef, and Alaska should purchase beef from Texas. C Texas has a comparative advantage in beef and should just produce beef for itself and not export to other states like Alaska. D Texas has an absolute advantage in beef and should share expertise with Alaska so they can develop an absolute advantage as well.
If the state of Texas has a lower opportunity cost for producing beef compared to Alaska then. __
A Texas has a comparative advantage in beef, and Alaska should purchase beef from Texas.
B Texas has an absolute advantage in beef, and Alaska should purchase beef from Texas.
C
Texas has a comparative advantage in beef and should just produce beef for itself and not export to other states like
Alaska.
D
Texas has an absolute advantage in beef and should share expertise with Alaska so they can develop an absolute
advantage as well.

Solution
3.4(264 votes)

Answer

(A) Texas has a comparative advantage in beef, and Alaska should purchase beef from Texas. Explanation 1. Define Comparative Advantage Comparative advantage occurs when a region can produce a good at a lower opportunity cost than another. 2. Analyze Opportunity Cost Given Texas has a lower opportunity cost for beef, it implies Texas has a comparative advantage in beef production over Alaska. 3. Determine the Best Option With a comparative advantage, Texas should export beef to regions like Alaska where the opportunity cost is higher.

Explanation

1. Define Comparative Advantage<br /> Comparative advantage occurs when a region can produce a good at a lower opportunity cost than another.<br />2. Analyze Opportunity Cost<br /> Given Texas has a lower opportunity cost for beef, it implies Texas has a comparative advantage in beef production over Alaska.<br />3. Determine the Best Option<br /> With a comparative advantage, Texas should export beef to regions like Alaska where the opportunity cost is higher.
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