Absolute Advantage vs. Comparative Advantage



Now that we’ve discovered about specialization, we’re in a position to be informed about absolute merit and comparative merit. That is one thing that may backup a person, corporate, or nation resolve what’s of their absolute best pursuits to construct, via analyzing alternative prices. This additionally ends up in the idea that of interdependence, which ties in with exports and imports, as we’ve already mentioned. Have a look!

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46 thoughts on “Absolute Advantage vs. Comparative Advantage”

  1. Wait if it cost less tables per bird house for Harry, then it makes more sense for Harry to build tables right? Logically if it cost less then you make that for a comparable advantage.

  2. Wish you would've used a more complex example to explain comparative advantage in the context of countries, the examples you gave made it sound like you just need to find the absolute advantage for each country and go for that one, but the exercises given by my professor are way harder

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