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John Spacey, November 16, 2015 updated on October 16, 2016
Absolute advantage is an ability to produce more than your competitors with the same amount of resources such as labor. This generally translates to a lower cost and often leads to market dominance.|
Area | Economics | Definition | An ability to produce more with the same amount of inputs. | Examples | The region that produces the most oranges per acre of land.
The automotive manufacturer that produces the most cars per worker.The bank that achieves the best return on capital.The technology company that produces the most valuable intellectual property for each unit of research & development spend. | Related Concepts | Competitive AdvantageEconomies Of Scale |
Economics
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