If the ________ Cost of Production for Two Goods Is

question 47

Multiple Choice

If the ________ cost of production for two goods is different between two countries then mutually beneficial trade is possible.

• A)marginal
• B)explicit
• C)opportunity
• D)implicit

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear, and tear.

Straight-Line Method

A method of calculating depreciation or amortization by spreading the cost of an asset evenly across its useful life.

Accumulated Depreciation

The total amount of depreciation expense allocated to a fixed asset since it was put into use.

Cost Of Production

The total expenditure incurred in manufacturing a product or providing a service, including materials, labor, and overhead costs.