What characterizes absolute advantage?

Absolute advantage is characterized by a country's ability to produce a good or service more efficiently than another country. This means that the country can produce the same amount of a product using fewer resources, thereby having a lower opportunity cost. When a country possesses an absolute advantage, it is often due to factors such as better access to natural resources, superior technology, or more skilled labor.

In contrast, the other options describe scenarios that do not align with the concept of absolute advantage. The notion of a monopoly is related to market control rather than efficiency in production. Producing less efficiently than others is contrary to the definition of absolute advantage. Specializing only in service industries would imply a limitation that does not pertain to the overall efficiency of producing goods. Lastly, having equal production capabilities suggests no advantage exists at all, which does not reflect the premise of being able to produce more efficiently.