A Person Has a Comparative Advantage in an Activity Whenever

question 204

Multiple Choice

A person has a comparative advantage in an activity whenever she

• A) has an absolute advantage in the activity.
• B) can perform the activity at a lower opportunity cost than another person can.
• C) can do the activity in less time than anyone else.
• D) can do everything better than anyone else.

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Definitions:

Cost of Equity

The cost of equity refers to the return a company must offer investors to compensate for the risk they undertake by investing in the company's equity.