Someone Has a Comparative Advantage in Producing a Good If

question 107

Multiple Choice

Someone has a comparative advantage in producing a good if she can produce that good

• A) in greater quantities.
• B) at a lower opportunity cost.
• C) using more capital and less labor.
• D) using more labor and less capital.

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Definitions:

Cost Center

A department within a company that does not directly add to profit but still incurs costs, such as the customer service department.

Managerial Responsibility

The accountability of managers to make decisions and oversee a company's operations to meet its goals.

Cost Controllability

The ability of a manager or business to influence or manage the costs associated with business operations.

Cost Incurrence

The moment when a company or individual recognizes a financial obligation or expense through the receipt of goods or services.