Distinguish the concepts of comparative advantage and absolute advantage
What will be an ideal response?
Comparative advantage is the ability to produce a good or service at a lower opportunity cost compared to other producers, while absolute advantage is the ability to produce more units of a good or service using a given quantity of labor or resource inputs. Comparative advantage is a relative concept and it is the basis for specialization.
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The management of expectations has increased in importance in policymaking in recent decades with the rise of ________
A) traditional Keynesian theory B) institutionalist theory C) torsion theory D) new Keynesian theory
Which statement is true given the total cost function: Total cost = 10Q + 5Q2 + 100?
A. Total cost at Q = 4 is 120 B. Average total cost at Q = 10 is 70 C. Total cost at Q = 5 is 175 D. Average fixed cost is zero at Q = 100