"Absolute advantage" is defined as when goods and services are produced at their lowest resource (opportunity) cost.

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"Absolute advantage" refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources. It does not specifically relate to producing goods at their lowest resource (opportunity) cost; that concept is more closely associated with "comparative advantage."

"Absolute Advantage" Is Defined as When Goods and Services Are