Which calculation helps determine which producer has the absolute advantage?

b. Amount produced divided by resources used.

Explanation:

A producer with Absolute advantage is one that can produce goods and services at a lower cost per production.

It is calculated by dividing the units produced by the resources that were employed to produce them. The country with the higher production per resource has Absolute advantage.

For instance if the U.S. takes 1 unit of labor to produce 20 units of sitcoms and Denmark takes 2 units to produxe those same units of sitcoms, the U.S. would have Absolute advantage because they produce:

= 20/1

= 20 units/labor

As opposed to Denmark:

= 20/2

= 10 units/ labor.

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