Comparative Advantage Means

question 78

Multiple Choice

Comparative advantage means

• A)the ability to produce more of a product with the same amount of resources than any other producer.
• B)the ability to produce a good or service at a lower opportunity cost than any other producer.
• C)the ability to produce a good or service at a higher opportunity cost than any other producer.
• D)compared to others you are better at producing a product.

---

Definitions:

Fixed Assets

Long-term tangible assets used in a business's operations and not expected to be converted to cash within a year.

Operating Capacity

The maximum output a company can produce in a given period under normal conditions, influencing its ability to meet demand.

Total Assets

Total Assets represent the sum of all the assets owned by an entity, including both current and non-current assets.