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Absolute Advantage

Absolute Advantage refers to the direct advantage of an individual, company, or country in producing a bigger quantity of a particular product with the same cost or time, or producing the same quantity of that product with lesser cost or time over another party that produces the same product. 

This economics concept refers to the efficiency of production of one party over another. It considers the specialization, division of labor, and trade to determine which party holds the direct advantage. This concept is largely used in international trade, where economies focus on producing a product that they have absolute advantage over to generate gains and distribute trade.

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