Question

Absolute advantage is based on the ability to produce a good with

A.
the greatest efficiency.

B.
the highest opportunity cost.

C.
the highest price.

D.
the most resources.

Answer 1

A

Step-by-step explanation:

Absolute advantage is when a producer can produce a good or service in greater quantity for the same cost, or the same quantity at lower cost, than other producers.

An entity with an absolute advantage can produce a product or service at a lower absolute cost per unit using a smaller number of inputs or a more efficient process than another entity producing the same good or service.