Which describes a way in which consumers most likely benefit from producers'absolute advantage?

Consumers' opportunity costs decrease.

Prices decrease as a result of increased production efficiencies.

Producers always use savings to improve products.

Consumers can find a given product in more places.

Question

Emilia Wong

History

14 February, 07:21

Which describes a way in which consumers most likely benefit from producers'absolute advantage?

Consumers' opportunity costs decrease.

Prices decrease as a result of increased production efficiencies.

Producers always use savings to improve products.

Consumers can find a given product in more places.

+1

Answers (1)

Know the Answer?

Karsyn Montgomery · Answer 1

B) Prices decrease as a result of increased production efficiencies.

Explanation:

When a producer has absolute advantage, it can produce more output with less inputs that competitors. In other words, it needs less capital, labor and land to produce the same amount of goods and services. This producer is thus, very efficient, and as it is producing more output, this output becomes cheaper. Consumer benefit from cheaper prices and their purchasing power increases.

Which describes a way in which consumers most likely benefit from producers'absolute advantage?Consumers' opportunity costs decrease.Prices decrease as a result of increased production efficiencies.Producers always use savings to improve products.Consumers can find a given product in more places.