absolute advantage


The name for the ability of one entity to engage in more efficient production than another entity. Assuming equal inputs, the entity with an absolute advantage will have a greater output.

Use absolute advantage in a sentence

Microsoft had an absolute advantage over the small technology firm because it had cheaper sources of labor and raw materials.

​ Was this Helpful? YES  NO 8 people found this helpful.

An individual working with two displays connected to his computer terminal has an absolute advantage over an individual with just one due to increased potential productivity.

​ Was this Helpful? YES  NO 2 people found this helpful.

My father owned a bar that was next door to a factory, and he got more customers to come to his bar over the one further down the street because he had an absolute advantage in location.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
absentee owner comparative advantage