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8 Examples of Absolute Advantage

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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. Absolute advantage can be enjoyed by a nation, business or individual. The following are illustrative 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.
An artisan at the top of their craft that produces superior quality to all competition.
A completely automated fulfillment center that can provision ecommerce orders cheaper and faster than all other competitors.
A construction firm that can build sustainable buildings at a lower cost and greater level of efficiency than all competitors in a region.
A country that can produce wood at a lower unit cost than all other nations.
Overview: Absolute Advantage
Area
Definition
An ability to produce more with the same amount of inputs.
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