Jamaica has an absolute advantage in the production of coffee as it is producing 10 more units than Nicaragua with same labor.
Absolute advantage refers to the capacity of an individual, business, region, or country to produce more of a good or service per unit of time with the same number of inputs, or to produce the same amount of a good or service per unit of time with fewer inputs, than its competitors. Absolute advantage can be achieved by manufacturing a product or service at a lower absolute cost per unit with fewer components, or by a more efficient approach.
Producers with different absolute advantages can almost always benefit more by areas of expertise, division of labor, and trade than producing and consuming in isolation. Comparative advantage, or the capability to manufacture goods and services at a lower opportunity cost, stands in contrast with absolute advantage.
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