Two employees, one graphic designer and one accountant of a large firm, have to produce a marketing document and estimate the cost of production. The graphic designer has the ability to produce the marketing document with fewer inputs and therefore has which of the following?

Question

Absolute advantage

Net benefit

Comparative advantage

Complete advantage

Answer 1

The graphic designer has an absolute advantage if they can produce the marketing document with fewer inputs compared to the accountant. Absolute advantage refers to the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group. In this case, since the graphic designer can produce the document with fewer resources, they hold the absolute advantage in that task.