Which of the Following Statements Is Always True

question 62

Multiple Choice

Which of the following statements is always true?

• A) Absolute advantage implies comparative advantage.
• B) Comparative advantage does not require absolute advantage.
• C) Absolute advantage requires comparative advantage.
• D) Comparative advantage requires absolute advantage.

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Definitions:

Unit Variable Cost

The variable cost incurred to produce one unit of a product, such as materials or labor.

Net Operating Income

The profitability of a company's core business operations, calculated as gross profit minus operating expenses, excluding interest and taxes.

Sales Commissions

A portion of sales revenue paid to sales personnel as a reward for their sales achievements.

Monthly Net Operating Income

The profit a business makes after paying for all operating expenses but before interest and taxes within a month.