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The manufacturer who has an absolute advantage is: C. Frozen Treats.
<h3>What is a comparative advantage?</h3>
A comparative advantage can be defined as the ability of a business firm or country to produce goods and services at a lower opportunity cost than their rivals (competitors) or trade partners.
<h3>What is an opportunity cost?</h3>
An opportunity cost is also referred to as alternative forgone and it can be defined as the value, profit or benefits that are given up and forfeited by an individual or a business firm (manufacturer), in order to choose or acquire something that is deemed most significant at a particular point in time.
<h3>What is an
absolute advantage?</h3>
An absolute advantage can be defined as a measure of the ability of an individual or a business firm (manufacturer) to perform a specific economic activity such as the production of goods and services, more efficiently than another individual or business firm.
In this context, we can infer and logically deduce that the manufacturer who has an absolute advantage is Frozen Treats because it produced 150 gallons at $12.
Read more on comparative advantage here: brainly.com/question/12291750
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Complete Question:
This table shows the cost of producing ice cream for several manufacturers. Manufacturer Amount Produced Cost The Dairy 100 gallons $10 Ice Cream, Inc. 100 gallons $15 Frozen Treats 150 gallons $12 Bob & Gary’s 125 gallons $15.
Which manufacturer has the absolute advantage?
The Dairy
Ice Cream, Inc.
Frozen Treats
Bob & Gary’s
Answer:
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