Absolute advantage refers to a country’s (or individual’s) ability to produce a specific good or service using fewer resources (e.g., labour, capital, raw materials) than another country or individual. This means that with the same amount of inputs, the country with an absolute advantage can produce a greater quantity of the good, or it can produce the same quantity using less time or fewer resources. It highlights efficiency in production and is a key concept in understanding the potential benefits of specialisation and international trade.
absolute advantage
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