which calculation helps determine which producer has the absolute advantage? resources used multiplied by…

which calculation helps determine which producer has the absolute advantage? resources used multiplied by amount produced amount produced divided by resources used amount produced minus resources used resources used divided by amount produced

which calculation helps determine which producer has the absolute advantage? resources used multiplied by amount produced amount produced divided by resources used amount produced minus resources used resources used divided by amount produced

Answer

Explanation:

Step1: Define absolute - advantage

Absolute advantage is when a producer can produce a good or service using fewer resources than another producer. It can also be thought of as producing more output per unit of input.

Step2: Analyze the formula

The formula for productivity (which helps in determining absolute advantage) is $\text{Productivity}=\frac{\text{Amount produced}}{\text{Resources used}}$. A higher value of this ratio indicates that more is being produced per unit of resource used, which implies an absolute - advantage.

Answer:

Amount produced divided by resources used