Rob Redbird Is Interested in Attending a Concert Next Weekend

question 46

Multiple Choice

Rob Redbird is interested in attending a concert next weekend.Unfortunately,he is scheduled to work.If he finds a substitute for his shift so he can attend the concert,what kind of cost is he incurring?

• A) Fixed
• B) Opportunity
• C) Unexpected
• D) Unavoidable
• E) Tangible

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than its competitors.

Absolute Advantage

The ability of an entity to produce more of a good or service than competitors using the same amount of resources.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than other entities, leading to more efficient trade possibilities.

Production

Production refers to the process of combining various material inputs and immaterial inputs (plans, knowledge) to make something for consumption (output).