Question

select the correct answer.
what is absolute advantage?
a. having a lower opportunity cost to produce goods than other firms or nations
b. having a lower cost of production than other firms or nations
c. having more available resources for producing a good than other nations
d. having fewer or no trade barriers for international trade than other nations

Explanation:

Absolute advantage is when a firm or nation can produce a good at a lower cost. Option A is comparative advantage (lower opportunity cost). Option C (more resources) doesn't define absolute advantage. Option D (trade barriers) is unrelated. So, B is correct.

Answer:

B. having a lower cost of production than other firms or nations