Which of the following best describes how consumers most likely benefit from producers' absolute advantage?

• A. Consumers benefit from increased government intervention in markets.
• B. Consumers are able to buy a greater variety of goods, even if production is inefficient.
• C. Consumers can purchase goods at lower prices due to more efficient production.
• D. Consumers face higher prices because producers have more market power.

Answer: (C)

Verified step by step guidance

1. Understand the concept of absolute advantage: A producer has an absolute advantage if they can produce a good using fewer resources or more efficiently than another producer.
2. Recognize that when producers have an absolute advantage, they can produce goods at a lower cost due to higher efficiency.
3. Consider how this efficiency translates to the market: Lower production costs typically allow producers to sell goods at lower prices.
4. Analyze the impact on consumers: Lower prices mean consumers can purchase goods more cheaply, increasing their purchasing power and overall welfare.
5. Conclude that the best description of consumer benefit from producers' absolute advantage is that consumers can purchase goods at lower prices due to more efficient production.