What are the two steps a producer can take to gain an absolute advantage?
1) Produce more goods, and 4) Use fewer resources are the correct answers.
According to college curriculum, the economic theory defines absolute advantagee as the ability to produce as many products as possible using as few resources. Comparative advantage on the other hand is something that helps a producer sell a product at a low price which is appealing to customers while maintaining good sales margins.
Saudi Arabia, a country rich with petrol, is a good example of a producer who has an absolute advantage. Saudi Arabia’s vast oil and petrol resources mean that the industry doesn’t have to invest in more advanced technologies, import, or transportation. Saudi Arabia, as a provider, can have an impact on the market, or at most, play a significant part.