Question

_____________________ identifies the area where a producer’s absolute advantage is relatively greatest, or where the producer’s absolute disadvantage in productivity is relatively least.

Answer 1

Comparative advantage

Step-by-step explanation:

Comparative advantage identifies the area where a producer’s absolute advantage is relatively greatest, or where the producer’s absolute disadvantage in productivity is relatively least.

Answer 2

Answer: Comparative advantage

Explanation: As per the comparative advantage law, in a free trade economy, a producer will produce more and consume less the commodity at which he has a comparative advantage.

Comparative advantage is used in the international trade by countries to evaluate whether it will be beneficial to import a good or to produce it on own.

From the above, we can say comparative advantage is the right answer.