Automobiles and many other products are differentiated.As a result
A)different countries may each have a comparative advantage in producing different types of automobiles.
B)consumers of automobiles have difficulty deciding what type of imported automobile to buy.
C)the quality of imported automobiles is less than it could be.
D)we see countries specializing completely in the production of automobiles.

Question

Quizplus · Accepted Answer

When products are differentiated, there may be variations in the characteristics, quality, and features that appeal to different consumer preferences. This means that different countries can specialize in producing specific types of automobiles that cater to the varying preferences of consumers globally. For example, Japan might make small, fuel-efficient cars, while the United States produces bigger, more powerful SUVs. This way, nations can trade these specialized products with other nations and have a comparative advantage.

Automobiles and Many Other Products Are Differentiated