📚 Learning Guide
Production Advantage
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How might the adoption of cutting-edge agricultural technology impact a farmer's comparative advantage in producing crops?

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Learning Path
Learning Path

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Choose AnswerChoose the Best Answer

A

It can lower production costs, allowing the farmer to produce at a lower opportunity cost.

B

It can increase the number of crops produced without affecting costs.

C

It can make the farming process more labor-intensive, reducing efficiency.

D

It can lead to a decrease in market demand for all agricultural products.

Understanding the Answer

Let's break down why this is correct

Using new tech lets a farmer grow crops more cheaply. Other options are incorrect because Many think new tech only boosts the number of crops but does not affect cost; The idea that tech makes farming harder is a misconception.

Key Concepts

Technological Innovation
Comparative Advantage
Topic

Production Advantage

Difficulty

medium level question

Cognitive Level

understand

Deep Dive: Production Advantage

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Definition
Definition

Production Advantage refers to a country's ability to produce goods more efficiently than another country. Absolute Advantage is when one country can produce more of both goods, while Comparative Advantage is when a country has a lower opportunity cost in producing a particular good. Understanding production advantages helps countries specialize in goods where they are most efficient, leading to overall economic growth.

Topic Definition

Production Advantage refers to a country's ability to produce goods more efficiently than another country. Absolute Advantage is when one country can produce more of both goods, while Comparative Advantage is when a country has a lower opportunity cost in producing a particular good. Understanding production advantages helps countries specialize in goods where they are most efficient, leading to overall economic growth.

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