________ Is the Ability of an Individual, a Firm, or a Country

question 91

Multiple Choice

________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.

• A)Absolute advantage
• B)Specialisation
• C)Autarky
• D)Comparative advantage

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Definitions:

Quantity Effect

Refers to the change in consumer behavior resulting from a change in the price of a product, where the quantity demanded increases as the price decreases and vice versa.

Total Revenue

The total amount of money received by a company for goods or services sold, before any expenses are subtracted.

Marginal Cost

The additional cost incurred from the production of one additional unit of a good or service.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a good or service.