What is the benefit in reaching the absolute advantage in the production of one good? A) to produce more units of a good then other countries B) to produce fewer units of a good then other countries C) to produce more units of a good while using fewer resources D) to produce fewer units of a good while using fewer resources

Donald Ward on May 14, 2018

The correct answer is C. An absolut advantage is defined as the capacity of a country, company or instution of the production of a good at a lower cost per unit of another. This is achieved due to that the production process is more efficient and allows you to produce more units by the use of a smaller quantity of inputs or resources. This concept is mainly used in international trade, in order to assess which countries are able to produce more efficiently than ohters.