Australia Has a Comparative Advantage in Producing Coal If the Australian

question 78

Multiple Choice

Australia has a comparative advantage in producing coal if the Australian price of coal before international trade is _______ the world price.

• A) greater than
• B) less than
• C) equal to
• D) not comparable to

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Definitions:

Break-even Point

The point at which total costs equal total revenue, indicating no profit or loss.

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing towards fixed costs and profit.

Selling Price

The amount of money charged to customers for a product or service, determined by factors like cost, market demand, and competition.

Break-even Sales

The amount of revenue from sales that is exactly sufficient to cover all fixed and variable expenses, resulting in zero profit or loss.