The Comparative Advantage Form of Competitive Advantage Means

question 193

Multiple Choice

The comparative advantage form of competitive advantage means

• A) that a country does not belong to any free trade agreements.
• B) that a country is the sole supplier of a product or service.
• C) that a country can produce everything better or more cheaply than any other country.
• D) that a country can produce some products better or more cheaply than it can other products.
• E) that a country can produce something better or more cheaply than any other country.

---

Definitions:

Operating Leverage

A financial metric that measures the degree to which a firm or project can increase operating income by increasing revenue.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest, indicating the profitability of its core business activities.

Sales Volume

The total number of units or products sold within a specific period.

Fixed Expense

Overheads that stay the same, no matter how much is produced or sold, encompassing charges such as property rent, staff paychecks, and insurance coverage costs.