What is absolute advantage? A. The ability to produce a good or service at a lower opportunity cost than other producers. B. The ability to produce more of a good or service than competitors using the same amount of resources. C. The ability to use all available resources to produce output. D. The gain from consuming a product whose benefit is greater than its cost. E. The gain from selling a product for more than it costs to produce that product.

Question

Shaun Camacho

Business

30 October, 11:05

What is absolute advantage? A. The ability to produce a good or service at a lower opportunity cost than other producers. B. The ability to produce more of a good or service than competitors using the same amount of resources. C. The ability to use all available resources to produce output. D. The gain from consuming a product whose benefit is greater than its cost. E. The gain from selling a product for more than it costs to produce that product.

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Gunnar Meyers · Answer 1

A

Explanation:

In international trading theory the absolute advantage is the capability to produce some good with the lowes cost of opportunity possible because that is the product which represents an advantage for a nation, the do not need to evaluate their production from other product so it is their identity.