Which of the following industries would be an example of comparative advantage based on the relative abundance of physical capital?
A) pharmaceuticals
B) brooms
C) canned peas
D) steel
E) cloth

Question

Quizplus · Accepted Answer

The steel industry is an example of comparative advantage based on the relative abundance of physical capital because it requires significant investment in machinery, infrastructure, and technology to produce efficiently, which are all forms of physical capital.

Which of the Following Industries Would Be an Example of Comparative