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Cost-Minimizing Combination of Labor and Capital
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Cost-Minimizing Combination of Labor and Capital
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10. The Costs of Production / Cost-Minimizing Combination of Labor and Capital / Problem 1
Problem 1
How can the concept of comparative advantage explain the differences in cost-minimizing combinations of inputs between two countries?
A
Countries will avoid using the input that is cheaper for them.
B
Countries will use the same combination of inputs regardless of cost differences.
C
Comparative advantage does not affect cost-minimizing combinations.
D
Countries will specialize in the input that is relatively cheaper for them, leading to different cost-minimizing combinations.
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