Which Statement Best Describes Absolute Advantage

question 124

Multiple Choice

Which statement best describes absolute advantage?

• A) DiNozzo has an absolute advantage in the production of wooden boats.
• B) DiNozzo has an absolute advantage in both.
• C) Gibbs has an absolute advantage in solving crimes,whereas DiNozzo has an absolute advantage in making wooden boats.
• D) Gibbs has an absolute advantage in both.
• E) Gibbs has an absolute advantage in making wooden boats,whereas DiNozzo has an absolute advantage in solving crimes.

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Definitions:

Pure Competition

A market structure where many firms offer a homogenous product, and no single company can influence the market price or terms of sale.