The ability of one producer to produce one good or service using fewer inputs than another producer is:
A) comparative advantage.
B) absolute advantage.
C) opportunity cost.
D) competition.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a producer to produce using fewer inputs than another producer. Comparative advantage, on the other hand, refers to the ability of a producer to produce a good or service at a lower opportunity cost than another producer. Opportunity cost is the cost of giving up one good or service in order to produce another, and competition is the rivalry between producers in a market.

The Ability of One Producer to Produce One Good or Service