Absolute advantage is
A) the ability to produce more output from given inputs than another producer can.
B) the ability to produce a good at a lower opportunity cost than other producers.
C) is always a relative concept.
D) the ability to produce all goods at lower costs than anyone else can.
Answer: A
You might also like to view...
Refer to Table 2-18. Which of the following statements is true?
A) Mickey has a comparative advantage in making both products. B) Minnie has a comparative advantage in making both products. C) Minnie has a comparative advantage in making hats and Mickey in making umbrellas. D) Mickey has a comparative advantage in making hats and Minnie in making umbrellas.
Brand loyalty in monopolistically competitive markets manifests itself as
A) upward sloping marginal cost curves. B) downward sloping demand curves. C) downward sloping marginal cost curves. D) upward sloping demand curves.