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 (in terms of resources used) than others. Option A refers to comparative advantage (lower opportunity cost). Option C about more resources doesn't define absolute advantage. Option D is about trade barriers, not production cost. Option B correctly states having a lower production cost.

Answer:

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