Question

Which calculation helps determine which producer has the absolute advantage?

O Resources used multiplied by amount produced
O Amount produced divided by resources used
O Amount produced minus resources used
O Resources used divided by amount produced
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Answer 1

The calculation that helps to determine which producer has the absolute advantage is:

B. The amount produced divided by resources used

Explanation

Productivity is calculated by dividing the amount of output produced by the inputs used in its production process. The size of the output is divided by the resources used to produce the goods to determine the advantage/profit acquired in a business process.This will give the producers ultimate advantage as compared to number of time the business will pay back.

Step-by-step explanation: