The term Absolute advantage describes the specialization in the production of a product or service.
Step-by-step explanation:
A firm is said to have an absolute advantage over the other firms only if it produces the same number or amount of goods or services from fewer resources than the others.
For example, if a Company "X" produces 10 caps in an hour using 3 workers and Company "Y" produces 15 caps an hour using 3 workers then we can say Y has an absolute advantage over X.
A person, group or company is said to have a comparative advantage if it produces something at a lower cost than the other companies. Here, the opportunity cost is also lower which means that the company did not face any kind of large opportunity loss.