One has an absolute advantage in producing something whenever
A) one enjoys producing that good.
B) one can produce more of it than someone else using the same quantity of resources.
C) one's opportunity cost is constant.
D) one's opportunity cost is lower than that of other producers.
E) one has specific training in the production of that good.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of an individual, firm or country to produce a good consuming fewer resources compared to another individual, firm or country. Hence, option B is the correct choice as it signifies that an individual can produce more of a good using the same quantity of resources.

One Has an Absolute Advantage in Producing Something Whenever