A country with a comparative advantage in producing semiconductorsA. Has a lower opportunity cost of producing semiconductors than its trading partners.B. Can produce semiconductors with fewer resources than its trading partners.C. Can achieve better quality in semiconductors than its trading partners.D. Has greater capacity to produce semiconductors than do its trading partners.
A. Has a lower opportunity cost of producing semiconductors than it’s trading partners.
The answer is B. A country with a comparative advantage in producing semiconductors can produce semiconductors with fewer resources than its trading partners.
Comparative advantage refers to a country’s ability to produce a good or service at a lower opportunity cost than its trading partners. Opportunity cost refers to the cost of one choice in terms of the foregone benefit of the next best alternative choice.
In this case, a country with a comparative advantage in producing semiconductors can produce semiconductors at a lower opportunity cost than its trading partners. This means that the country is able to produce semiconductors using fewer resources than its trading partners, which gives it an advantage in the global market.
Option A is incorrect because the lower opportunity cost refers to the ability to produce semiconductors using fewer resources, not the cost of producing semiconductors.
Option C is incorrect because comparative advantage does not necessarily refer to better quality.
Option D is incorrect because comparative advantage refers to the ability to produce a good or service at a lower opportunity cost, not the capacity to produce.
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