When a producer has an absolute advantage at producing a good, it means the producer:
A) can produce more of that good than others with the same amount of resources.
B) has the ability to produce a good or service at a lower opportunity cost than others.
C) has no reason to trade with others.
D) is less efficient than other producers.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a producer to produce a greater quantity of a good or service than competitors using the same amount of resources.

When a Producer Has an Absolute Advantage at Producing a Good