____ Is the Ability to Produce a Specific Product More

question 167

Multiple Choice

____ is the ability to produce a specific product more efficiently than any other product.

• A) Absolute advantage
• B) Specialisation
• C) Relative advantage
• D) Dominant advantage
• E) Comparative advantage

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Equity Capital

Money gathered by a firm in return for a stake in the company's ownership.

"Love Money"

Funds borrowed from family or friends to start a business, characteristically under flexible terms but carrying the risk of personal relationship strain.

Personal Assets

Assets owned by an individual, including cash, savings, property, and investments.