The ability of an individual,firm,or country to produce more of a certain good than other competing producers,given the same amount of resources,is referred to as ________.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of an individual, firm or country to produce more of a certain good than other competing producers given the same amount of resources. This gives them a competitive edge in the market and allows for higher efficiency in production. The other options, such as marginal advantage and perfect advantage, are not commonly used or recognized terms in economics. Comparative disadvantage, on the other hand, refers to the situation where a producer has to give up producing one good in order to produce another. Therefore, it is not the best choice for this question.

The Ability of an Individual,firm,or Country to Produce More of a Certain