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In Naboo, the opportunity cost of producing one more unit of ship parts is to give up In Tatooine, the opportunity cost of producing one more unit of ship parts is to give up Tatooine has the comparative advantage in the production of ship parts, units of lightsabers. Part 2 (3 points) See Hint In Naboo, the opportunity cost of producing one more unit of lightsabers is to give up units of ship parts. units of ship parts. In Tatooine, the opportunity cost of producing one more unit of lightsabers is to give up has the comparative advantage in the production of lightsabers.

User Lanwen
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Final answer:

Comparative advantage is the ability to produce a good or service at a lower opportunity cost than others. In this case, Naboo has a comparative advantage in ship parts production, while Tatooine has a comparative advantage in lightsabers production.

Step-by-step explanation:

Comparative advantage is the ability of a country or individual to produce a good or service at a lower opportunity cost than another country or individual. It is based on the concept of opportunity cost, which is the value of the next best alternative forgone when a decision is made. In this case, the question is asking about the opportunity cost of producing ship parts and lightsabers in Naboo and Tatooine.

In Naboo, the opportunity cost of producing one more unit of ship parts is giving up a certain number of units of lightsabers. In Tatooine, the opportunity cost of producing one more unit of ship parts is also giving up a certain number of units of lightsabers. However, Tatooine has a comparative advantage in the production of ship parts because its opportunity cost of producing ship parts is lower than in Naboo.

Similarly, in Naboo, the opportunity cost of producing one more unit of lightsabers is giving up a certain number of units of ship parts. In Tatooine, the opportunity cost of producing one more unit of lightsabers is also giving up a certain number of units of ship parts. However, Naboo has a comparative advantage in the production of lightsabers because its opportunity cost of producing lightsabers is lower than in Tatooine.

User Hamid Habibi
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Final answer:

Comparative advantage is based on the opportunity cost of producing an additional unit of a good. It drives the decision-making process regarding which goods a country or entity should produce and trade, aiming for the most efficient use of resources.

Step-by-step explanation:

Comparative advantage in production is determined by opportunity cost, which is what must be given up to produce one additional unit of a good. When a country or entity can produce a good at a lower opportunity cost than others, it has a comparative advantage in producing that good. For example, if Naboo can produce ship parts at the cost of giving up fewer lightsabers than Tatooine, then Naboo has a comparative advantage in producing ship parts. Conversely, if Tatooine can produce lightsabers while giving up fewer ship parts in comparison to Naboo, then Tatooine has a comparative advantage in producing lightsabers.

It's critical to remember that comparative advantage drives the decision of countries or companies on which goods to produce and trade. This framework helps determine the most efficient allocation of resources based on the opportunity costs involved in producing different goods. An area with a flatter production possibility curve for a specific good demonstrates a comparative advantage in the production of that good, as it sacrifices less of the other goods to increase production.

User Em Ae
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