Absolute advantage is found by comparing different producers' ability to:

• A. produce a good at a lower opportunity cost than others
• B. specialize in the production of multiple goods
• C. produce more of a good or service with the same amount of resources
• D. trade goods and services efficiently in the market

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of absolute advantage. Absolute advantage refers to the ability of a producer to produce more of a good or service with the same amount of resources compared to others.
2. Step 2: Differentiate absolute advantage from comparative advantage. Comparative advantage is about producing at a lower opportunity cost, while absolute advantage focuses on the total output capability.
3. Step 3: Analyze the options given: producing at a lower opportunity cost relates to comparative advantage, specializing in multiple goods is not directly related to absolute advantage, and trading efficiently is about market exchange, not production capability.
4. Step 4: Identify that the correct definition of absolute advantage is the ability to produce more of a good or service with the same resources, which means higher productivity.
5. Step 5: Conclude that absolute advantage is about comparing producers based on their maximum output given the same inputs, not on opportunity costs or trade efficiency.