The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good,
A)has a low opportunity cost of producing that good, relative to the opportunity costs of other producers.
B)has a comparative advantage in the production of that good.
C)has an absolute advantage in the production of that good.
D)should be the only producer of that good.

Question

Quizplus · Accepted Answer

An absolute advantage exists when a producer requires fewer inputs to produce a given amount of a good compared to other producers. This concept focuses on the efficiency in the use of inputs, not on the opportunity cost or the exclusivity of production.

The Producer That Requires a Smaller Quantity of Inputs to Produce