Comparative Advantage Refers to _____

question 90

Multiple Choice

Comparative advantage refers to _____

• A) the ability of an individual to produce a greater amount of a good than another individual.
• B) the ability of an individual to produce a lesser amount of a good than another individual.
• C) the ability of an individual to produce a good at a lower opportunity cost than another individual.
• D) the ability of an individual to produce a good at a lower dollar cost than another individual.
• E) the ability of an individual to produce a good using fewer labor hours than other individuals.

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Definitions:

Marginal Expenditure

The extra expense associated with making an additional unit of a product or service.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public.

Product Market

The marketplace in which final goods or services are offered for purchase by consumers, businesses, and the public sector.

Monopsonist

A market condition in which there is only one buyer for a particular product or service.