Question

What are the two steps a producer can take to gain an absolute advantage?

A. Produce more goods.
B. Use high-quality resources.
C. Produce more expensive goods.
D. Use fewer resources.
E. Produce high-quality goods.
F. Use local resources.

Answer 1

Producers can gain an absolute advantage by producing more goods and using fewer resources.

Step-by-step explanation:

Two steps a producer can take to gain an absolute advantage are:

1. Produce more goods: By increasing production output, a producer can achieve economies of scale and lower the average cost per unit, thereby gaining an absolute advantage.
2. Use fewer resources: By utilizing resources efficiently and minimizing wastage, a producer can reduce production costs and increase productivity, leading to an absolute advantage.

For example, if Country A can produce 100 units of a good using 50 resources, and Country B can produce the same number of units using only 30 resources, Country B has an absolute advantage in the production of that good.