Jul 15, 2017 · A country is said to have an absolute advantage in a good over another country if that first country. can produce more units of the good. is a more efficient producer of the good. is a major consumer of the good. has a lower opportunity cost of producing the good.
Jul 08, 2017 · A country has absolute advantage in the production of goods when it can produce more of that good than another country with the same resources (Chamlagi, 2013). Countries with absolute advantages can produce a product or service using a smaller number of inputs and/or using a more efficient process than other entities producing the same product or …
Jan 27, 2015 · INTERDEPENDENCE AND THE GAINS FROM TRADE A country is said to have an absolute advantage in the production of a good when it uses a smaller quantity of inputs than its trading partner to produce the same quantity of output. ANSWER: T.
Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time using a lesser quantity of inputs, than its competitors.
Even when one country has an absolute advantage in all products, trade can still benefit both sides. This is because gains from trade come from specializing in one's comparative advantage.
A country has an absolute advantage in producing a good over another country if it uses fewer resources to produce that good. Absolute advantage can be the result of a country's natural endowment.
A country is said to have the absolute advantage in the production of a good or service if that country can produce a larger amount of units of that good or sevice than can another country, using equivalent amounts of resources and technology.
Absolute advantage refers to the ability of a country to produce a good more efficiently than other countries. In other words, a country that has an absolute advantage can produce a good with lower marginal cost (fewer materials, cheaper materials, in less time, with fewer workers, with cheaper workers, etc.).
Absolute advantage. The ability to produce the same amount of units of a good or service as some other producer using quantity of resources (output).
The United States has an absolute advantage in computer production.
The United States has an absolute advantage in automobile production because it takes fewer Americans (6) to produce a car in one day than it takes Italians (8).
CanadaOne worker in Canada can produce more lumber (40 tons versus 30 tons), so Canada has the absolute advantage in lumber.
Canada has an absolute advantage in the production of maple syrup.
Why does the United States not have an absolute advantage in coffee? The climate in the United States is not ideal for growing coffee, so countries closer to the equator tend to have a greater absolute advantage.
As an example, if Japan and Italy can both produce automobiles, but Italy can produce sports cars of a higher quality and at a faster rate with greater profit, then Italy is said to have an absolute advantage in that particular industry.