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Max has a clear advantage in organizing soccer workouts, whereas Eli has a clear advantage in developing apps.
What does "absolute advantage" mean?
- Economics uses the term "absolute advantage" to refer to a party's superior output potential.
- It specifically refers to the ability to produce a particular good or service more efficiently (and for less money) than a competitor.
Which of the following offers a prime illustration of absolute advantage?
If Japan and Italy can both build autos, but Italy can produce sports cars of a higher quality, faster, and with more profit, then Italy is said to have an absolute advantage in that particular industry.
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