Which of the Following Is Eroding the U

question 41

Multiple Choice

Which of the following is eroding the U.S. comparative advantage?

• A) The spread of technology
• B) The law of one price
• C) A depreciating dollar
• D) Intellectual property rights

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Definitions:

Fixed Costs

Costs that do not change with the volume of production, such as rent, salaries, or insurance.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, used to cover fixed costs and to generate profit.

Fixed Costs

Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.

Full-Service Contract

An agreement that provides a complete range of services related to a specific product, property, or activity, including maintenance, repairs, and often replacements.