[This is part of the series: The Complete Guide To Economics 101.]
What is an absolute advantage in economics?
Absolute Advantage is nothing more than comparing the output of someone, or some group, to another.Comparative advantage, however, compares opportunity cost among producers.Examples of absolute advantage include:
- A person who can type the fastest in their class is said to have an absolute advantage in typing.
- A sales team that consistently sells the most units is said to have an absolute advantage in sales.
- A nation that produces the most oranges, with the least inputs, is said to have an absolute advantage in producing oranges.