Asked by Emily Gellis on Jun 27, 2024
Verified
Absolute advantage is found by comparing different producers'
A) opportunity costs.
B) payments to land, labor, and capital.
C) input requirements per unit of output.
D) locational and logistical circumstances.
Absolute Advantage
A situation where an individual or entity can produce more of a good or service with the same amount of resources compared to others.
Input Requirements
The set of resources, materials, and labor needed for the production of goods or services.
- Identify the differences between absolute and comparative advantages.
Verified Answer
CH
Corey HillmanJul 01, 2024
Final Answer :
C
Explanation :
Absolute advantage is determined by comparing the input requirements per unit of output between different producers, indicating which producer can produce a good using fewer resources.
Learning Objectives
- Identify the differences between absolute and comparative advantages.
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