To produce 100 bushels of wheat, Farmer A requires fewer inputs than does Farmer B. We can conclude that Farmer A has an absolute advantage over Farmer B in producing wheat.

Question

Quizplus · Accepted Answer

Farmer A requires fewer inputs to produce the same amount of wheat as Farmer B, indicating that Farmer A can produce wheat more efficiently, which is the definition of having an absolute advantage in production.

To Produce 100 Bushels of Wheat, Farmer a Requires Fewer