One Has an Absolute Advantage in Producing Something Whenever

question 69

Multiple Choice

One has an absolute advantage in producing something whenever

• A) one enjoys producing that good.
• B) one can produce more of it than someone else using the same quantity of resources.
• C) one's opportunity cost is constant.
• D) one's opportunity cost is lower than that of other producers.
• E) one has specific training in the production of that good.

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Definitions:

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs or regulatory requirements.

Monopoly

a market structure characterized by a single seller who has exclusive control over a product or service, often leading to higher prices and less competition.

Long Run

In economics, a period in which all inputs or factors of production can be varied, allowing companies to adjust all aspects of their operations.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs, representing the additional gain over the opportunity cost.