Question: Absolute advantage is determined by?
Absolute advantage is determined by a producer's ability to produce a good or service using fewer resources than another producer. In other words, a producer has an absolute advantage if they can produce more output with the same amount of inputs or produce the same amount of output with fewer inputs than their competitors. Absolute advantage is a key concept in international trade, as countries with an absolute advantage in producing certain goods or services can produce them at a lower cost and thus have a competitive advantage in the global marketplace.
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