How Is Absolute Advantage Found

question 102

Multiple Choice

How is absolute advantage found?

• A) by comparing opportunity costs
• B) by calculating the dollar cost of production
• C) by comparing the productivity of one nation to that of another
• D) by first determining which country has a comparative advantage

---

Definitions:

Break-even Price

The market price that a stock or commodity must reach for an investor to recover their initial investment without any profit or loss.

Mark-up

A percentage added to the cost of goods to cover overhead and profit, determining the selling price.

Retail Price

The price at which goods or services are sold to individual consumers in stores or online.

Retailer

A business or person that sells goods directly to consumers.