Look at the examples, and then determine which type of advantage each one describes. a producer can provide cable service more cheaply than another producer. a producer can produce salads while giving up fewer opportunities to make sandwiches than another producer. a producer can create more car parts than another producer, while using the same number of resources.

 1) If a producer can provide cable service more cheaply than another producer, it is an absolute advantage.
2) If a  producer can produce salads while giving up fewer opportunities to make sandwiches than another producer, it is a comparative advantage.

3) If a  producer can create more car parts than another producer does,  using the same number of resources, the price per unit is cheaper and it is an absolute advantage.

Absolute advantage is the ability of a person, a  country, company or region to produce a good or service at a cheaper price per unit than another entity producing the same good or service.

Comparative advantage is the ability of a person, a  country, company or region to produce a specific good or service more efficiently (lower opportunity cost)  than another entity to produce the same good or service.

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