absolute advantage

absolute advantage definition - business

absolute advantage

In economics, the ability of a firm, region, or country to produce a good or service at a lower cost. For example, Florida has an absolute advantage in growing citrus, and China has an absolute advantage in the production of textiles. Compare comparative advantage. See also acquired advantage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.