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an absolute advantage occurs when a country can maintain . group of answer choices a monopoly by outlawing foreign imports a monopoly by being the lowest-cost producer of a good or service its advantage by producing a good or service more efficiently a monopoly by levying high taxes on imports

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When a nation can sustain a monopoly by being the lowest-cost producer of an item or service, this is known as an absolute advantage.

What is the absolute advantage theory's underlying premise?

The assumptions behind Adam Smith absolute advantage include the following: The cost of manufacturing items is determined by the proportionate amount of labor needed, which is the only input or element of production. Two nations and two goods are involved in trade. Trade between the two nations is unimpeded.

How does the concept of absolute advantage relate to the efficient use of resources?

Comparative advantage is when someone can manufacture a thing at a lower opportunity cost, but absolute advantage is when someone can produce more of a good with a given number of resources.

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