The Concept of Absolute Advantage Relies on

question 319

Multiple Choice

The concept of absolute advantage relies on

• A) the idea of comparative advantage.
• B) the ability to produce more units of an item with a given amount of resources.
• C) the idea of opportunity cost.
• D) the concept of economic efficiency as measured on the production possibility curve.

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Definitions:

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another's due to satisfaction with the product and a good experience with the brand.

Conjunctive Rule

A decision rule used in consumer behavior that entails choosing items that meet all of a predetermined set of criteria.

Weighted Additive Rule

This rule is a decision-making strategy where alternatives are evaluated by multiplying each attribute's importance weight by its quantitative value, then summing these products to determine the best option.

Compensatory Rule

A decision rule used in consumer choice where the negative aspects of a product can be compensated by its positive aspects.