Question

Automobiles and many other products are differentiated. As a result Group of answer choices the quality of imported automobiles is less than it could be.

Answer 1

The available options are:

A) we see countries specializing completely in the production of automobiles.

B) the quality of imported automobiles is less than it could be.

C) different countries may each have a comparative advantage in producing different types of automobiles.

D) consumers of automobiles have difficulty deciding what type of imported automobile to buy.

Answer:

C) different countries may each have a comparative advantage in producing different types of automobiles.

Explanation:

According to the principle of comparative advantage, Automobiles and many other products are differentiated. As a result of "different countries may each have a comparative advantage in producing different types of automobiles."

This is evident in the fact that some countries may have a comparative advantage to produce Trucks than cars, while some may have a comparative advantage in producing caterpillar than Trucks.

This is also similar in a variety of other products. The comparative advantage could be based on raw materials, expertise, climates, etc.