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Absolute Advantage
The capacity of an entity to manufacture a product or provide a service more effectively than its rivals, by utilizing fewer resources.
Comparative Advantage
A principle in economics that asserts a country's ability to produce a good at a lower opportunity cost compared to another country, fostering global trade efficiency.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision, a fundamental concept in economics that emphasizes the potential benefits that are lost when choosing one option over another.
Comparative Advantage
The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.
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