Question

Which situation best illustrates the concept of absolute advantage?

A. A factory in Vietnam can produce more shoes than other
countries.
B. The total value of U.S. exports is lower than the value of the
country's imports.
C. A software company is forced to increase its prices to pay for
rising labor costs.
D. A restaurant buys its ingredients from nearby farms to help the
local economy

Answer 1

Answer:A) A factory in Vietnam can produce more shoes than other countries.

Explanation: got it right in the quiz!!!!

Answer 2

A factory in Vietnam can produce more shoes than other countries.

Step-by-step explanation:

Absolute advantage is the potential of an individual, a company, or a country to produce a higher quantity of output than its competitors while using the same inputs. It means an institution with absolute advantage has more efficiency in producing a particular commodity than its rivals. It utilizes lower marginal cost (materials and labor), making its output much cheaper than others.

A factory in Vietnam has an absolute advantage because it can produce shoes at a lower cost than others. Absolute advantage makes the factory more competitive in the market than its rivals.