*ECONOMICS* Which situation best illustrates the concept of absolute advantage? A. A factory in Vietnam can produce more shoes than other
countries.
B. The total value of U. S. exports is lower than the value of the
country's imports.
C. A software company is forced to increase its prices to pay for
rising labor costs.
D. A restaurant buys its ingredients from nearby farms to help the
local economy

A. A factory in Vietnam can produce more shoes than other

countries.

Explanation:

Absolute advantage is the potential of an individual,  a company, or a  country to produce a higher quantity of output than its competitors while using the same inputs. It means an institution with absolute advantage has more efficiency in producing a particular commodity than its rivals. It utilizes lower marginal cost (materials and labor), making its output much cheaper than others.

A factory in Vietnam has an absolute advantage because it can produce shoes at a lower cost than others. Absolute advantage makes the factory more competitive in the market than its rivals.