A.

a. Comparative advantage means the ability to produce a products at the lowest opportunity cost than another
producer. Comparative advantage is the best option chosen in a trade-off. Comparative advantage is based on
the minimum output(quantity), and also based on the maximum input(time). Example of competitive market
is like the vegetable market. We differentiate the vegetables we are going to buy according to the freshness
of the vegetables.
References:slides and lectures

b. Trade is I have something you want, and you have something I want, and we exchange
with each other, and we both have benefits. Differences in opportunity cost and
comparative advantage create gains from trade. Specialisation is the basis fro trade. When
each person specialises in producing good for which the or she has comparative
advantage, total production in economy rises. Both parties have benefits and can be share
together. Gains from trade in terms of price that each person pays the other, transaction
occurred. Both parties have different opportunity cost, both parties can bargain.

B.
Comparative advantage means the ability to produce a products at the lowest opportunity
cost than another producer. Almost all Apple products are manufactured overseas and are
not manufactured in America. The principle of comparative advantage states that each
good should be produced by the country that has smaller opportunity cost of producing
that good. Other countries have lower opportunity cost compared to America in
manufacturing Apple, this shows that other countries have comparative advantage.
Apple's executives believe that the vast scale of overseas factories as wall as the
flexibility, diligence and industrial skills of foreign worker have outpaced than American
counterparts. Overseas countries paid cheaper wages for workers because of their low
minimum wage. This shows that other countries are more specialise in manufacturing
Apple products at the lowest opportunity cost. The basis trade for comparative advantage
is specialisation. Specialisation takes place when an individual, firm or country produces
a narrow range of goods or services and over time develops a comparative cost
advantage in producing these goods and services. Specialisation also associated on how
too efficiently use the scarce resources. Within 96 hours, the plant was producing over
10,000 iPhones a day. The speed and flexibility is breathtaking,' says one Apple
executives. The oversees workers are specialised in their own sector, their number of
products produced increase with a short period of time. If the production of Apple will be
done in America, the opportunity cost is high. The standard minimum wage in America is
high compare to the foreign countries. This method is very efficient for the company. This
increase the company profit because the cost was low, while the products that were
produced is more. Goods produced abroad and sold domestically are called imports.
Apple products are import from another country. Foreign workers could have jobs and it
reduce unemployment in that country. Apple’s success has benefited US economy also
increase because the Apple’s success has benefited the US economy by empowering
entrepreneurs and creating jobs at companies like cellular providers and export shipping
Apple products to other countries.

Krylovskiy, N. (2020, January 30). Specialisation - definition. Economics Online |

Economics Online. https://www.economicsonline.co.uk/Definitions/Specialisation.html

C.
I agree that the situation described in the statement is production efficiency. Efficiency
means Economic efficiency assumes minimum cost for the production of a good or
service, maximum output in production and maintaining the quality. Within 96 hours, the
plant was producing over 10,000 iPhones a day. The speed and flexibility is breathtaking,'
says one Apple executives. "A foreman immediately roused 8,000 workers inside the
company's dormitories, and then each employee was given a biscuit and a cup of tea,
guided to a workstation and within half an hour started a 12-hour shift fitting glass screens
into bevelled frames. The cost in paying wages is cheap, the employee was given only a
biscuit and a cup of tea. This is a low expenses and the workers can produce 10,000
iPhones per day in just 96 hours. They produce maximum number of iPhone in that
shorten period of time. This brings high benefits for the Apple company because the
workers is being efficient. Apple’s expenses for the input is just at the lowest cost, while
the outputs that were gain are very maximise. The workers produce 10,000 of iPhones,
which is a lot.

(n.d.). Retrieved from https://link.springer.com/referenceworkentry/10.1007%2F978-94-007-0753-

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