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 fewer resources.

Question

Quizplus · Accepted Answer

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

Absolute Advantage Is