This is an economics concept in which one party has a direct advantage in efficiency in producing or providing a specific good or service over another party or competitor.
Understanding the Term
Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time using a lesser quantity of inputs, than its competitors.
It’s a concept that is widely used in economics.
Absolute advantage can be contrasted with comparative advantage, which is the ability to produce goods and services at a lower opportunity cost.