When one producer can create more of a good than another producer using the same quantity of resources, the first producer has:

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BlackTom AI · Accepted Answer

To begin, we should connect the question to the core idea of productivity differences between producers. 
Option a: increasing relative costs. This would imply that the cost of producing another unit rises as more is produced, which describes increasing opportunity costs or a bowed production possibility frontier, not the situation described in the stem. Therefore this option does not capture the idea of one producer simply being more productive with the same resources.
Option b: a comparative advantage. Comparative advantage is about who has the lower opportunity cost in producing a good, not about who can produce more with the same resources. It’s about relative efficiency in terms of what you sacrifice to produce one good over another, so it’s not the correct characterization of the scenario given.
Option c: gains from trade. This concept explains why two producers might benefit from specializing and trading based on comparative advantages, but it doesn’t define the basic attribute of a single producer’s efficiency relative to another. It’s more about outcomes of trade than the fundamental measure of productivity per se.
Option d: an absolute advantage. This term describes a producer who can produce more of a good using the same quantity of resources, i.e., higher productivity or efficiency. That matches exactly the scenario described in the question, where the first producer outproduces the second with identical inputs. 
In summary, option d correctly identifies the concept at play, while options a, b, and c describe related but not equivalent ideas about efficiency, opportunity costs, and trade benefits.

MCD2020 - T1 - 2025 Homework Quiz 1 - Foundations of Economics and Gains from Trade

When one producer can create more of a good than another producer using the same quantity of resources, the first producer has:

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