When a Person Has a Comparative Advantage in Producing a Good

question 88

Multiple Choice

When a person has a comparative advantage in producing a good or service,the person has

• A) a higher opportunity cost in producing that product than someone else.
• B) a constant opportunity cost in producing that product.
• C) a decreasing opportunity cost in producing that product.
• D) a lower opportunity cost in producing that product than someone else.
• E) an increasing marginal benefit in producing the good.

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Definitions:

Residual Claims

Financial rights to assets remaining after all debts have been settled, often referring to shareholders' claims on a company's earnings and assets after paying creditors.

Public Ownership

Public ownership refers to the government or state holding all or a majority of the equity in assets or enterprises, contrasting with private sector ownership.

City Sewer System

A city sewer system is an infrastructure network designed for the collection and transportation of wastewater from residences and businesses to treatment facilities.

Movie Theater

A venue specifically designed for the viewing of films, with a large screen and auditorium seating.