The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a producer to produce a good using fewer resources or inputs than another producer. It is not dependent on the quantity of inputs used, but rather on the efficiency of the producer in utilizing those inputs. Therefore, the producer who requires a smaller quantity of inputs to produce a good does have an absolute advantage in producing that good.

The Producer Who Requires a Smaller Quantity of Inputs to Produce