What is absolute advantage?
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 of a country or firm to produce a particular good or service more efficiently than another country or firm, using the same amount of resources. It means producing more quantity of a good or service with the same or fewer resources than its competitors. Therefore, option A is the correct definition of absolute advantage.

What Is Absolute Advantage