The Theory of Comparative Advantage Is Based On

question 38

Multiple Choice

The theory of comparative advantage is based on:

• A)absolute opportunity costs.
• B)relative opportunity costs.
• C)total costs of production.
• D)total costs,including transportation costs.
• E)a comparison of marginal cost with average variable costs.

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Definitions:

Gain-sharing

A compensation strategy that shares financial gains from improved performance or productivity with employees.

Group-oriented

A trait or approach emphasizing teamwork, collaboration, and prioritizing the goals and success of the group over individual achievements.

Incentive Systems

Structured programs designed to encourage and reward specific behaviors among a group of individuals.

Profit Sharing

A company's practice of distributing a portion of its earnings to employees, usually based on the company's profitability, as an incentive and reward for their contributions.