What is comparative advantage? What is absolute advantage?
What will be an ideal response?
Comparative advantage is the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors. Absolute advantage is the ability of an individual, firm, or country to produce more of a good or service than competitors, using the same amount of resources.
Economics
You might also like to view...
Refer to Figure 4.7. The game described in the payoff graph has the characteristics of a(n) ________ game
A) assurance B) prisoner's dilemma C) chicken D) pure coordination
Economics
Which explains why supply curves slope upward to the right?
A) Sunk costs B) Decreasing average costs C) Increasing marginal costs D) Multiple per-unit costs
Economics