Question

Which describes a way in which consumers most likely benefit from producers’ absolute advantage?

Consumers’ opportunity costs decrease.
Prices decrease as a result of increased production efficiencies.
Producers always use savings to improve products.
Consumers can find a given product in more places.

Answer 1

Prices decrease as a result of increased production efficiencies.

Explanation: When producers have an absolute advantage they can make goods more efficiently (more output or lower resource use), which lowers production costs and typically leads to lower consumer prices and/or greater supply.