5
QuizMultiple Choice

Comparative and Absolute Advantage

Question 5 • 2102320-Economics HONORS - Edgenuity Teacher

What can a producer gain by specializing?

Answer
A
sales
B
new customers
C
absolute advantage
D
opportunity costs

Explanation

Specializing means focusing production on goods a producer can make especially efficiently. This can give the producer an absolute advantage: the ability to produce more of a good with the same resources than another producer. Specialization does not itself guarantee more sales or new customers, and opportunity costs are trade-offs rather than a gain.

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