Absolute advantage is
A) the ability to produce more of a good or service than competitors when using the same amount of resources.
B) the ability to produce higher quality goods compared to one's competitors.
C) the ability to produce a good or service at a higher opportunity cost than one's competitors.
D) the ability to produce more of a good or service than competitors that have more resources.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability to produce more of a good or service than competitors when using the same amount of resources. It does not refer to the quality of the goods or the opportunity cost of production. Therefore, option A is the correct answer.

Absolute Advantage Is