Question

Which calculation helps determine which producer has the absolute advantage?

O Resources used multiplied by amount produced
O Amount produced divided by resources used
O Amount produced minus resources used
O Resources used divided by amount produced

Answer 1

O Resources used divided by amount produced

The calculation that helps determine which producer has the absolute advantage is dividing resources used by the amount produced.

Step-by-step explanation:

Determining the absolute advantage involves dividing resources used by the amount produced. This calculation assesses efficiency, indicating which producer can generate a given output using fewer resources, highlighting their comparative advantage in production.