You have an absolute advantage in producing something whenever:
A) you enjoy producing that good.
B) you can produce more of it than someone else can using the same quantity of resources.
C) your opportunity cost is constant.
D) your opportunity cost is lower than that of other producers.
E) you have specific training in the production of that good.

Question

Quizplus · Accepted Answer

Absolute advantage is determined by comparing the productivity of two producers using the same quantity of resources. If one producer can produce more of a good than another using the same amount of resources, then they have an absolute advantage in producing that good. Enjoyment, opportunity cost, and training do not necessarily determine absolute advantage.

You Have an Absolute Advantage in Producing Something Whenever