Question

what is the difference between absolute advantage and competitive advantage?​

Answer 1

Answer:

Absolute advantage is the ability to produce a good using fewer inputs than another producer, while comparative advantage is the ability to produce a good at a lower opportunity cost than another producer (reflecting the relative opportunity cost). Comparative advantage is more important for trade.

Answer 2

Absolute advantage focuses on the marginal cost of producing a good, whereas comparative advantage specifically focuses on the opportunity cost of production.