Comparative and Absolute Advantage Answers

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Absolute advantage is best defined as:

being able to make more of a product than a competitor.

being able to use fewer resources than a competitor.

being able to produce more efficiently than a competitor.

being able to create a product with a higher opportunity cost than a competitor.

What is the difference between comparative advantage and absolute advantage?

Comparative advantage measures opportunity cost and absolute advantage measures efficiency.

Absolute advantage measures opportunity cost and comparative advantage measures production cost.

Comparative advantage measures sale price and absolute advantage measures production cost.

Absolute advantage measures sale price and absolute advantage measures production cost.

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