Absolute Advantage

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Notes:

Those entities with absolute advantages can produce something using a smaller number of inputs than another party producing the same product.

See also: Comparative Advantage, Eating Someone's Lunch, Eclectic Paradigm, Productivity

---

Absolute advantage

A person, company or country has an absolute advantage if its output per unit of input of all goods and services produced is higher than that of another person, company or country.