Which economic theory emphasizes maximizing output with minimal input?

The correct choice emphasizes a key concept in economics related to production efficiency. Absolute advantage refers to the ability of an individual, firm, or country to produce more of a good or service with the same amount of resources as another entity. This theory highlights the importance of maximizing output while using minimal inputs, which can lead to more efficient use of resources and potentially greater economic gains.

In the context of production, an entity with an absolute advantage can produce goods more effectively than competitors, thereby creating opportunities for increased efficiency and potentially lower costs. This principle is foundational in economics, as it underpins the rationale for specialization and trade; when each producer specializes in goods where they have an absolute advantage, overall output can be maximized.

The other options do not directly relate to the concept of maximizing output with minimal input. Free trade is about the exchange of goods and services across borders without tariffs or restrictions, and while it can encourage efficiency, it does not specifically focus on maximizing output from minimal inputs. The Laffer curve illustrates the relationship between tax rates and tax revenue, rather than production efficiency. Factor endowment deals with the resources a country possesses (like land, labor, and capital) and how these resources are utilized, but does not specifically address the concept of maximizing