Question

What are the two steps a producer can take to gain an absolute advantage? 1.Produce more goods. 2.Use high-quality resources. 3.Produce more expensive goods. 4.Use fewer resources. 5.Produce high-quality goods. 6.Use local resources. I put the answers as 2, 3, and 5. Are those correct?

Answer 1

I think the correct answers from the choices listed above are options 1, 4, 5 and 6. The steps a producer can take to gain an absolute advantage are to produce more goods, use fewer resources, produce high-quality goods and use local resources. Hope this answers the question.

Answer 2

I believe the answers are:

1.Produce more goods

4.Use fewer resources.

5.Produce high-quality goods.

6.Use local resources

Absolute advantage refers to a situation when a producer manage to produce a product way more efficiently compared to other producer, which make them able to win competition on the market easily. Factors that could cause an absolute advantage include things such as : larger quantity, higher quality, more material availability, cheaper material cost, and low cost of production.