A Person Has a Comparative Advantage in an Activity If

question 11

Multiple Choice

A person has a comparative advantage in an activity if that person can

• A) produce more goods in a given amount of time than another person.
• B) produce fewer goods in a given amount of time than another person.
• C) perform the activity at a lower opportunity cost than anyone else.
• D) perform that activity at a higher opportunity cost than anyone else.

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Definitions:

Advertising Fee

A charge incurred for the promotion of products or services through various media channels to target potential customers.

Franchisor

The party in franchising that owns the overarching company, trademarks, and products or services being offered, which grants the right for a franchisee to operate under the business's name.

Franchisee

A party that acquires the rights to use a company's trademark and business model to conduct business under that name.

Royalty Fees

Periodic payments made by a franchisee to the franchisor, typically based on a percentage of the franchisee's sales revenue.