The Basis for Specialization and Trade,both Within a Nation and Among

question 44

Multiple Choice

The basis for specialization and trade,both within a nation and among nations,is ________ advantage.

• A) specialized
• B) dominant
• C) academic
• D) absolute
• E) comparative

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Definitions:

Cost-plus Pricing

A pricing strategy where a fixed percentage or a fixed amount is added to the cost price to determine the selling price.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of investment.

Markup

The amount added to the cost of a product to cover expenses and generate profit, often expressed as a percentage of the cost.

Absorption Costing

An approach in accounting that involves adding all production-related costs, whether stable or variable, into the product’s final price.