We can determine absolute advantage by comparing different producers' ability to:

• A. trade goods at the equilibrium price
• B. produce more of a good using fewer resources
• C. produce a good at a lower opportunity cost
• D. specialize in the production of multiple goods

Answer: (B)

Verified step by step guidance

1. Understand the concept of absolute advantage: it refers to the ability of a producer to produce more of a good using fewer resources compared to another producer.
2. Compare the production capabilities of different producers by looking at the quantity of goods they can produce with the same amount of resources.
3. Identify which producer can produce a given good more efficiently, meaning they use fewer inputs or resources to produce a higher output.
4. Note that absolute advantage focuses on productivity and resource use, not on opportunity cost or trade prices.
5. Conclude that the correct way to determine absolute advantage is by comparing who can produce more of a good using fewer resources.