Definition of Absolute Advantage

Definition: An absolute advantage occurs when one person, company, or country is more efficient at producing the same good or service than another company. If Mark can cut four lawns in an hour and Susan can cut five lawns in an hour, then Susan has an absolute advantage in lawn cutting.

Terms related to Absolute Advantage:

• Comparitive Advantage

About.Com Resources on Absolute Advantage:

• GM Is Expanding and Increasing Production Creative Destruction and the Future of North American Capitalism

Writing a Term Paper? Here are a few starting points for research on Absolute Advantage:

Journal Articles on Absolute Advantage:

• Comparative and Absolute Advantage A Rehabilitation of Absolute Advantage
• Linking Absolute and Comparative Advantage to Intra-Industry Trade Theory