Comparative Advantage Is Related Most Closely to Which of the Following

question 37

Multiple Choice

Comparative advantage is related most closely to which of the following?

• A)output per hour
• B)opportunity cost
• C)efficiency
• D)bargaining strength in international trade

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Definitions:

Marginal Product

The additional output that results from a one-unit increase in the input of a production factor, holding all other inputs constant.

Marginal Revenue Product

the additional revenue generated from using one more unit of a factor of production.

Marginal Revenue Product

The extra income created from using another unit of an element like labor or capital.

Variable Input

Refers to inputs whose quantity can vary in production, affecting the total output.