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This question is about absolute advantage vs comparative advantage.

What is the benefit of achieving an absolute advantage in producing one good?

By Zippia Team - Dec. 7, 2022

The benefit of achieving an absolute advantage in producing one good is purely economic. Having an abundance of goods others do not is essential for lucrative trade, and this is especially true when you're the best at producing something.

Additionally, having an absolute advantage may allow you to monopolize the production of a specific good, as other countries or companies will see that you have the most effective production and choose to produce something else.

For example, the company Amazon has an absolute advantage in shipping and variety on the online marketplace. For this reason, many other companies don't even want to try and compete.

Therefore, not only is having an absolute advantage profitable, but it's also a great way of deterring the competition.

What is the benefit of achieving an absolute advantage in producing one good?

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