When one producer can create more of a good than another producer using the same quantity of resources,the first producer has
A) a zero-sum game.
B) gains from trade.
C) an absolute advantage.
D) a comparative advantage.
E) increasing relative costs.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of one producer to use fewer resources or the same resources more efficiently than another producer to produce more goods. Therefore, the first producer has an absolute advantage over the second producer.

When One Producer Can Create More of a Good Than